It's The Best Time In 20 Years To Buy This 5.1% Yielding Blue-Chip

It’s The Best Time In 20 Years To Buy This 5.1% Yielding Blue-Chip

Posted On July 15, 2022 11:21 am
By: Dividend Sensei

Bear markets can be scary, recessionary bear markets can be scarier, and so far, 2022 has seen historic declines in both stocks and bonds.

The economic outlook continues to darken, with some blue-chip economists expecting a recession to begin by Q4 and earnings to potentially fall 20%, and stocks another 10% to 35%.

Throughout this chaos, this boring, recession-resistant, and low volatility 5.1% yielding blue-chip – is flat this year, beating the market by over 20% and the Nasdaq by 30%.

Its trading at the lowest PE in 20 years, and its yield has only been higher 18% of the time in the last 25 years.

Anti-bubble valuation, combined with its 5.1% very safe yield and modest 4% growth estimates, could result in attractive 110% total returns within 5 years, about 2X the S&P consensus.

If you’re looking to sleep well at night in the next recession, whenever it finally arrives, this is one of the most reasonable and prudent blue-chips you can buy today.

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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.