This High Yield Blue-Chip Is Still A Strong Buy And Possibly Set To Fly To Record Highs

This High Yield Blue-Chip Is Still A Strong Buy And Possibly Set To Fly To Record Highs

Posted On April 26, 2022 3:06 am

Rising interest rates have caused a tech correction and a rotation into value and quality.

This high-yield company is one of 2022’s hottest blue-chips, up 14%, the mirror image of the Nasdaq, up about 20% since December.

This is one of the world’s highest quality and safest blue-chips, and is still trading at 11.9X earnings and 10.3X cash-adjusted earnings, a bargain by even private equity standards.

It could potentially deliver Buffett-like 20% annual returns over the next three years and almost 150% returns over the next five, 4X more than the S&P 500.

Over the long term, analysts think this high-yield blue-chip could deliver market and dividend aristocrat beating returns of almost 14%, slightly more than the 12.5% it’s generated over the last 36 years.

Within a diversified and prudently risk-managed portfolio, this company is as close to a perfect long-term high-yield blue-chip opportunity as exists on Wall Street.

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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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