By: Dividend Sensei
High-yield investing is one of the most time-tested ways to retire in safety and splendor. But there is an even better strategy for maximizing long-term retirement income.
Combining the world’s best high-yield blue-chips with the best growth companies can deliver far more income over time, higher returns, and lower volatility in bear markets.
Amazon and Google, when combined with two high-yield blue-chips, yield a very safe 4.2% yield, and analysts expect 16% long-term total returns and 18% annual income growth.
AMZN and GOOG are 43% and 30% historically undervalued, respectively, and analysts expect about 40% total returns in just the next year.
Over the next three to five years, these coiled spring growth legends could deliver 18% to 45% annual returns and beat the S&P 500 by 7X.
And thanks to rapidly growing rivers of free cash flow, GOOG and AMZN are likely to eventually become two of the best dividend growth stocks on earth, thanks to cash piles approaching $500 billion by 2030, even after spending $400 billion on buybacks.