By: Dividend Sensei
The speed with which stocks have plunged has many investors shell-shocked. The 60/40 retirement portfolio has fallen nearly as much as stocks.
Low volatility dividend aristocrats are a great choice for those looking to build the ultimate sleep well at night retirement portfolio.
These are the lowest volatility aristocrats you can safely buy at reasonable to attractive valuations.
They yield a very safe 4%, are 15% undervalued, and analysts expect long-term market-beating returns, just as they’ve delivered over the last two decades.
These aristocrats fell half as much as the S&P 500 during the Great Recession and averaged 11% annual volatility over the last 20 years, 33% less than the S&P 500 while outperforming the broader market.
They can help you sleep well at night in all economic conditions while potentially retiring in safety and splendor.
In fact, when combined with three ETFs you can turn these low volatility aristocrats into a Zen Super Ultra SWAN Low Volatility recession-optimized retirement portfolio that can potentially help the typical retired couple
- generate an extra $342K in inflation-adjusted retirement income over 30 years compared to a 60/40 retirement portfolio
- deliver $7.4 million more inflation-adjusted wealth over 30 years than a 60/40 retirement portfolio
- turn $510,000 in median retirement savings into $9.4 million inflation-adjusted wealth after 30 years more than a 60/40 retirement portfolio
- fell less than 20% during the Great Recession vs 31% for a 60/40 and 51% for the S&P 500
- fell just 7% in March 2020 vs 24% for the S&P 500 and 12% 60/40