By: Dividend Sensei
High-yield blue-chips can help you sleep well at night during market downturns, such as the 10% to 20% correction that might be coming in by October 18th.
That’s when the US is currently scheduled to default on its debts for the first time in history, which Moody’s and virtually all economists think would trigger a horrific recession.
Johnson & Johnson with its recession-resistant business model and AAA credit rating is as close to a risk-free dividend stock as exists.
However, JNJ is merely a “wonderful company at a fair price” while these two faster-growing and higher-yielding blue-chips are wonderful companies at attractive valuations.
These two healthcare legends offer higher, safe yield than JNJ, and faster growth forecasts, resulting in superior long-term income and wealth compounding potential. You can’t go wrong owning or buying any of them, but for fresh savings today, these two pharma giants make better alternatives for income investors.