Alibaba Is Dirt Cheap But So Are These 2 Faster-Growing Dividend Blue Chips

Posted On September 29, 2022 7:23 am
By: Dividend Sensei

This bear market has created a sea of blue-chip bargains for smart long-term investors, including some of the world’s best growth stocks.

Alibaba’s growth outlook has risen by 50% in the last few months, but only to 12.8%. That’s not that impressive given the highly speculative nature of this high-risk investment.

Alibaba is now 52% historically undervalued and could potentially quadruple in the next five years. I recommend a 1% or smaller max position sizing, given the risk profile.

This first Alibaba alternative is a hyper-growth very low-risk Ultra SWAN (sleep well at night) quality dividend king growing at 20%, trading at a 34% discount, that could triple in five years.

This second Alibaba alternative is a hyper-growth low-risk Ultra SWAN tech titan growing at 15.4%, trading at 7.9X cash-adjusted earnings that could triple in five years.

Both faster-growing dividend blue-chips are expected to deliver superior income and long-term returns, with less risk than BABA, making them superior alternatives for bear market bargain hunters 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.