How To Turn Square And PayPal Into 3.2%-Yielding Rich Retirement Dream Stocks

How To Turn Square And PayPal Into 3.2%-Yielding Rich Retirement Dream Stocks

Posted On November 19, 2021 3:21 am

The market is 30% overvalued, interest rates are near zero, and inflation is sky-high. It’s a perfect storm of negative headwinds for those hoping for a comfortable or even rich retirement.

Fortunately, high yield/fast growth dividend investing offers a low-risk way for you to beat inflation, retire rich, and stay rich in retirement.

PayPal and Square are two world-class hyper-growth blue chips that when combined with high-yield aristocrats like this 6.4% yielding blue-chip, can generate life-changing income and returns.

The aristocrat is attractively valued today, PayPal is close to fair value, and Square is wildly overpriced. But the combination of these three at fair value or better creates a 3.2% yield, 21.5% growth, and 24.7% consensus long-term total return potential.

Even adjusting for inflation and the risk of companies not growing as expected, SQ, PYPL, and this 6.4% yielding aristocrat generate inflation and risk-adjusted expected returns of 15.0% compared to 5.9% for the Nasdaq, 5.6% for the Dividend Aristocrats, 4.7% for the S&P, and 2.7% for a 60/40 portfolio.

In other words, it’s potentially the perfect combination to fight inflation today, retire rich tomorrow, and grow steadily richer over time, no matter what the stock market, economy, or inflation are doing.

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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.

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