This Buffett-Style Dividend Aristocrat Could Potentially Triple In 5 Years

This Buffett-Style Dividend Aristocrat Could Potentially Triple In 5 Years

Posted On July 22, 2022 9:28 am

Fears of a recession are looming over Wall Street and have helped contribute to the 11th worst six-month decline in US market history.

This creates the opportunity for long-term investors to potentially grow their money in the next 10 years, or better, if you know what blue-chip bargains to buy.

This hyper-growth dividend aristocrat is one of the world’s highest quality companies, a classic Buffett-style “fat pitch” wonderful company at a wonderful price.

It is 34% historically undervalued, trading at just 10.7X cash-adjusted earnings for a company growing at over 20% (PEG of 0.47). LOW is hyper-growth at a wonderful price.

It’s already is trading at a P/E only seen in severe recessions, and analysts think could deliver Buffett-like 24% annual returns, 225%, over the next five years, 4X the market consensus. Over the long term, its 17.6% risk-adjusted expected return consensus is similar to the 18% returns it delivered over the last 37 years when it beat the S&P 500 by 8X adjusted for inflation.

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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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