A Dividend Aristocrat That Could Crash And One That Could Triple

Posted On January 31, 2023 7:47 am
By: Dividend Sensei

Dividend aristocrats are some of the world’s safest and most dependable companies. Exactly the kinds of companies you want in a recession.

But not all dividend aristocrats are safe buys. Some are almost 50% overvalued, like this red-hot medical aristocrat.

This medical aristocrat was up 23% in 2022 because its 50% market share in insulin and weight loss drugs makes it one of the fastest-growing healthcare stocks on earth.

But it’s 46% overvalued and offers flat return potential over the next three years. In the short-term it could fall by 21% or more.

In contrast, this dividend king is growing at 20% and trading at 11.4X cash-adjusted earnings, a PEG of 0.57.

It could deliver double within three-years and triple over the next five years.

Long term, this dividend king bargain offers Buffett-like 22% return potential, just as it delivered for the last 37 years.

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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.