2 Outrageously Cheap Buffett-Style Aristocrat Bargains For 2023

Posted On January 25, 2023 7:08 am
By: Dividend Sensei

A recession in 2023 could cause negative earnings growth to gut stocks in the next few months.

Or, as happens 65% of the time when earnings growth is negative, stocks might soar. The smart long-term investor doesn’t risk missing out on 6500% returns trying to make 6522%.

Coiled spring dividend aristocrats, which are 32% to 42% undervalued, are low-risk/super high probability buys today, whether or not we get a recession and stock market crash this year.

This first coiled spring aristocrat offers a very safe 4.1% yield and a 27-year dividend growth streak. It has a secular megatrend at its back that could deliver 16X inflation-adjusted returns long-term and as much as 52% in the next year alone.

This second coiled spring aristocrat is 42% undervalued, trading at 9.3X cash-adjusted earnings. It has a $150 trillion megatrend that could drive 16% growth and deliver 65X inflation-adjusted returns over the next 30 years. But it could also double in the next three years and potentially even soar 72% in 2023.

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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.