It's The Best Time In 20 Years To Buy This 7.4%-Yielding Dividend Aristocrat

It’s The Best Time In 20 Years To Buy This 7.4%-Yielding Dividend Aristocrat

Posted On February 16, 2023 8:15 am
By: Dividend Sensei

This 7.4% yielding blue-chip just raised its dividend for the 23rd consecutive year (at least).

It’s a global aristocrat with the lowest payout ratio in its industry.

Its 2022 results were very strong, with 37% growth in its most important products.

Management is reducing leverage, making the dividend safer over time.

It’s also guiding for 5% growth this year and 8% long-term, meaning 15.4% long-term returns, 50% higher annual returns than the S&P 500, and consistent with the returns it’s delivered for the last 38 years.

This 7.4% yielding aristocrat is trading at 7.9X earnings, pricing in -1.2% growth, and trading at the lowest P/E in 20 years.

The last time it was this undervalued, it soared 3000%.

This aristocrat is potentially an ultra-value, Buffett-style, “fat pitch” buy with a 75% upside to fair value.

It could double in 3 years and deliver almost 250% returns within five years.

Long-term, analysts expect 16.5% returns, the highest in its industry and better than any ETF, including the Nasdaq.

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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.