By: Dividend Sensei
Today’s 26% overvalued market means future returns for stocks are likely to be disappointing.
But it’s always a market of stocks, not a stock market, and incredible high-yield aristocrat bargains are always available if you know where to look.
This 8.5% yielding global aristocrat is 50% undervalued, trading at 7.2x forward earnings, and pricing in -2.6% CAGR long-term growth. It’s the most attractive valuation in 20 years.
Analysts actually expect its future plans (which are going better than expected) to deliver 3% to 5% CAGR growth while management thinks buybacks can boost that to 7% to 9%.
Over the next five years, analysts think it could triple, and deliver almost 13% CAGR long-term returns for decades. The last time this high-yield aristocrat was this undervalued, it delivered 1800% total returns over the next 15 years.