By: Dividend Sensei
This is one of my favorite high-yield dividend aristocrats in the world for its combination of safety, quality, and industry-leading risk management.
This 7% yielding blue-chip has a 27-year dividend growth streak, and management says it plans to raise the dividend 5% to 7% per year in the future, potentially for decades to come.
It has the most utility-like business model in its industry, with 98% of sales secured by long-term contracts or regulations. It’s tied for the strongest credit rating in the industry.
According to seven risk rating agencies, his ultra-yield aristocrat boasts 84th industry percentile risk management, very good risk management, and very low risk.
Today this aristocrat is yielding a very safe 7%, trading at 8.2X cash flow, pricing in -0.6% growth, and is 21% historically undervalued, a potentially strong buy.
It could double in the next five years and deliver 13.5% annual returns for decades to come, just as it has for the last 32 years.
That’s better returns than the S&P 500, dividend aristocrats, and even the Nasdaq, with 4X higher very safe yield than the market offers.