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.