By: Dividend Sensei
The 2022 bear market has seen stocks fall about twice as fast as most major corrections, causing great concern for many investors.
These defensive blue-chips yield an average of 7% and are up 16% this year when stocks and even bonds are down double-digits.
These Ultra SWANs (Sleep Well At Night) are 21% undervalued, and a potentially strong buy for anyone looking for a port in this bear market storm.
Analysts expect 13% long-term returns, similar to the 15% they’ve delivered over the last 20 years, making them potentially ideal rich retirement dream stocks.
Combined with five low-cost ETFs, generating a prudent allocation to stocks, cash, and bonds, they form the ZEUS High-Yield/Low Volatility Portfolio.
This is a portfolio that:
- yields a very safe 4.2% vs 2.1% for a 60/40 retirement portfolio
- has 9.5% long-term return potential vs 7.2% for a 60/40
- has 10% annual volatility (33% less than the S&P 500)
- fell just 13% during the Great Recession vs 31% for a 60/40 and 51% for the S&P 500
- fell just 9% during the Pandemic crash vs 12% for a 60/40
- is 90% statistically likely to never fall more than 22% in any future bear market
- could help the average retired couple achieve almost $2 million in extra inflation-adjusted wealth compared to a 60/40 portfolio over the next 30 years
- achieve almost $4 million in inflation-adjusted wealth
- could help the average retired couple enjoy almost $500K in additional inflation-adjusted retirement income compared to a 60/4 over the next 30 years