6+% Yielding Safe Retirement Blue-Chips Perfect For This Bear Market

6+% Yielding Safe Retirement Blue-Chips Perfect For This Bear Market

Posted On May 24, 2022 7:34 am

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

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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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