2 Dividend Aristocrat Bargains That Could Potentially Triple In 5 Years

Posted On June 13, 2022 2:45 am
By: Dividend Sensei

In the 2022 bear market, dividend aristocrats are outperforming the S&P 500 by 2X and the Nasdaq by 3X, falling just 7% YTD.

But just as with the stock market in general, some aristocrats are still outrageously expensive while others are anti-bubble, Buffett-style “fat pitch” bargains.

These two blue-chips are the two most undervalued dividend champions on Wall Street, about 40% historically undervalued and trading at 8X cash-adjusted earnings, literally recession-level valuations.

They are priced for around -1% long-term growth, but analysts expect 15% long-term growth, including double-digit growth for the next five years.

Over the next three to five years, analysts believe these anti-bubble aristocrat bargains could potentially deliver 20% to 35% annual returns, basically tripling in the next five years, and outperform the S&P 500 by 4X to 6X.

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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.