By: Dividend Sensei
Defensive dividend aristocrats can make wonderful investments if you’re worried about recessions, bear markets, or both.
During the Great Recession, these two high-yield dividend legends both grew earnings by 30%, and they kept right on growing during the Pandemic, and analysts expect steady growth in a mild potential 2023 recession.
One offers a very safe 8.4% yield (potentially 9.0% come August), and the other a very safe 7.0% yield but with nearly 2X the growth potential.
Over the next three to five years, analysts expect both high-yield defensive aristocrats to deliver around 100% to 160% total returns, and over the long term, 14% to 17% annual, market-crushing returns are expected.
Both are potential rich retirement dream aristocrat bargains for anyone comfortable with their risk profiles, but I’m overweight one of them for its superior risk profile and long-term total return potential.