Get Ready To Back Up The Truck On This 9.4%-Yielding Blue-Chip

Get Ready To Back Up The Truck On This 9.4%-Yielding Blue-Chip

Posted On November 23, 2022 7:46 am

This blue-chip is the highest-yielding safe midstream on Wall Street and just raised its payout 10% to a mouthwatering 9.4%.

It is up 21% in 2022 on the back of one of the best energy rallies in history. It might potentially fall as much as 20% in the coming months if the market suffers a 16% to 27% decline in the first half of 2023.

Analysts expect the 9.4% yield to rise to 12.2% yield on today’s cost. In the event of a 15% to 27% market decline in Q1, This blue-chip might yield 11% to 12%.

Analysts expect 6% payout growth through 2027 as well as one of the strongest balance sheets in the industry, thanks to the FCF self-funding business model.

This is an anti-bubble blue-chip trading at 6.9X cash flow and 16% historically undervalued.

It could double in the next five years, and analysts expect a 27% gain within one year, which is 100% justified by fundamentals.

Long-term 12.4% annual return potential is almost as good as the Nasdaq and better than the S&P 500, or high-yield ETFs.

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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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