How To Retire Rich Even If This 8.7% Yielding Blue-Chip Never Goes Up Again

Posted On December 6, 2021 7:20 am
By: Dividend Sensei

This 8.7% yielding blue-chip has been in a five-year bear market that has many income investors wondering if it’s a value trap like AT&T.

This bear market began when it was 50% overvalued, and today it’s 50% undervalued, trading at 7X earnings, the best valuation in 20 years.

The last time this high-yield blue-chip was this undervalued it soared 28X in the next 15 years.

While analysts expect it to soar 190% in the next five years, if it were to trade flat for several more years, income investors could achieve inflation-adjusted very safe yields of 11%, 13%, or even 16%.

Combining this 8.7% yielding blue-chip with rapidly growing blue-chips like HD and AMZN can allow you to enjoy 6X to 19X more long-term retirement income.

As long as its fundamentals keep growing, it’s nearly impossible to lose money over the long term, if you avoid selling out of disgust or fear.

The longer this global aristocrat remains disconnected from fundamentals, the easier it will be to combine it with hyper-growth blue-chips and retire rich, stay rich in retirement, and help your children and grandchildren retire even richer.

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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.