By: Dividend Sensei
This fast-growing dividend blue-chip is in a 40% bear market and crashed 10% after earnings. The actual results were very good.
Its trading at the best P/E in 18 years, and the company is buying back $1 billion per month of its stock, driving 21% CAGR growth in free cash flow per share.
This legendary blue-chip trades at 7.1X cash-adjusted earnings, a 40% historical discount, and it’s priced for -2.8% growth.
Analysts expect it to grow at 12.5% annually over time, potentially delivering 15.3% annual returns, similar to what it’s done since 1972 when it delivered 2,566X returns.
This dividend blue-chip is an Ultra Value Buffett-style “fat pitch” that could deliver almost 250% returns in the next 5 years, 26% CAGR, 5X more than the S&P 500.
Its risk-adjusted expected returns are 3X that of the market, and it’s expected to deliver 2X more dividends in the next five years