This 8.5% Yielding Dividend Aristocrat Is Set To Soar And Too Cheap To Ignore

Posted On October 11, 2021 3:13 am
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.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.