By: Dividend Sensei
The 2022 bear market has been very painful for stock and bond investors but potentially set us up for an epic rally next year.
Individual dividend aristocrats are trading at incredible discounts to historical fair value, close to 60% in some cases.
This first aristocrat yields a very safe 5.9% and is trading at the lowest P/E in 21 years, and could more than 4X in the next five years.
This second aristocrat yields a safe 6.9%, the highest yield in 31 years, and is 57% historically undervalued. It could be almost 4X in five years.
The last time they were this undervalued, they delivered 6X to 20X returns in the next 10 to 15 years, and long-term 13% to 20% returns are what analysts expect.
Bear markets bring life-changing opportunities to be “greedy when others are fearful,” and that’s what the most undervalued high-yield aristocrats on Wall Street offer today.