By: Dividend Sensei
The market keeps climbing to new highs, causing many investors to worry that no good bargains remain on Wall Street.
Even with the market 30% overvalued, plenty of bargains are available, for any goal or risk profile, even among dividend aristocrats.
Today, five blue chips represent the 5 best high-yield aristocrats retirees can safely buy with the market at record highs.
They yield 5.6%, 2X that of the Vanguard high-yield ETF. They are also 10% undervalued vs the aristocrats 28% overvaluation.
Analysts expect 13.5% CAGR long-term total returns vs 7.9% S&P 500 and 11.0% aristocrats. That’s similar to the 12% annual returns they’ve delivered since 2009, including their recent bear market.
Over the next five years, analysts think these five aristocrats could more than double, thanks to their combination of quality, yield, growth, and attractive valuation.