This 7% Yielding Dividend Aristocrat Is The Perfect Retirement Dream Stock

This 7% Yielding Dividend Aristocrat Is The Perfect Retirement Dream Stock

Posted On October 14, 2022 8:43 am

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.

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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.

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