While September has seen the market wobble a bit, it's still been a great year for stocks.
Of course, that means that valuations have remained very rich indeed, reducing future returns to levels about one-third what we've seen in the last decade.
For context, here's the consensus return potential of the S&P 500, which JPMorgan estimates is 26% historically overvalued.
S&P 500 2023 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
S&P 500 2026 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
Is the market priced as if nothing can ever go wrong again? Yes. And of course, something will always go wrong.
Here is a 21-page report on the debt ceiling crisis and why it might result in a 10% to 20% correction in the next two to four weeks.
(Source: Final Countdown, Janet Yellen)
The last time we came to the brink of a debt default, the market fell almost 20%.
(Source: Jill Mislinski)
And S&P downgraded America's credit rating from AAA to AA+, on what became known as "Black Monday".
Not even the world's safest dividend blue-chips, such as Johnson & Johnson (JNJ) were spared during that debt ceiling correction.
Risk-free assets, such as bonds, despite the rising fears of default, still did their job and rose while stocks fell, as they've done 92% of the time since 1950.
Basically, price fluctuations have only one significant meaning for the true investor.
They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal.” - Benjamin Graham
Volatility isn't something to be feared but celebrated. Because every market downturn is a potentially glorious opportunity to lock in generous, safe, and growing dividends and exceptional returns from blue-chip bargains hiding in plain sight.
And remember it's always a market of stocks, not a stock market. Whatever your goals, needs, risk profile, or time horizon, something wonderful is always on sale... if you know where to look.
That brings me to my five highest conviction blue-chip recommendations, in which I've personally invested $790,000 for my retirement portfolio, Amazon (AMZN), British American Tobacco (BTI), Alibaba (BABA), Magellan Midstream (MMP), and Enbridge (ENB).
So let's take a look at why I'm so confident in these five no-brainer blue-chip bargains and why they might be just what your diversified and prudently risk management portfolio can use to achieve your own rich retirement dreams.
Why I've Invested $790,000 Into These Five No-Brainer Blue-Chip Bargains
(Source: Morningstar) - I've invested another $86,000 in my 401(k) and Roth IRA into AMZN, BTI, and MMP
I'm utilizing what I call the Dividend Kings Zen Phoenix strategy, which seeks to generate maximum safe long-term income and exceptional total returns from the world's highest quality blue-chips.
I seek balance in all things that matter.
Growth vs value? I now buy equal amounts of both, never buying yield without growth at a reasonable price and never buying growth without safe yield.
A concentrated or diversified portfolio? Using the example of the greatest investors in history, I use a hybrid strategy.
- Peter Lynch's Magellan fund owned over 1,100 stocks but was 50% concentrated in the top 10
- Berkshire's portfolio owns 48 companies with Apple making up 45%
- Charlie Munger's Daily Journal portfolio owns just five companies
- Bill Miller's (legendary value investor who beat the S&P 500 for 16 consecutive years) personal portfolio is 86% Amazon
I own about 160 positions in total, but my top five, which I've built through hundreds of small opportunistic buys, make up about 54% of my real money Phoenix portfolio, which is tracked weekly at Dividend Kings.
Why have I entrusted so much of my life savings to these five blue-chip bargains? So I can enjoy fundamentals like these.
My Retirement Portfolio Sorted By Most Undervalued
(Source: Morningstar) I no longer own AT&T
My overall portfolio is 19% undervalued according to Morningstar. Across over 500 companies DK's fair value estimates with within 1% of Morningstar's.
My portfolio trades at 11.6x cash flow and 14.1x forward earnings.
(Source: Morningstar)
My 3.7% yield and over 12% growth consensus means not just impressive income over time, but also some very attractive long-term return potential.
LT Consensus Total Return Potential LT Consensus Total Return Potential
Investment Strategy Yield LT Consensus Growth Safe Midstream 6.1% 6.2% 12.3% DS Phoenix 3.7% 12.3% 16.0% Safe Midstream + Growth 3.3% 8.5% 11.8% REITs 3.0% 6.9% 9.9% High-Yield 2.8% 11.2% 14.0% Dividend Aristocrats 2.3% 8.9% 11.2% Value 2.1% 11.9% 14.0% 60/40 Retirement Portfolio 1.8% 5.1% 6.9% REITs + Growth 1.8% 8.9% 10.6% High-Yield + Growth 1.7% 11.0% 12.7% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% S&P 500 1.4% 8.5% 9.9% Nasdaq (Growth) 0.5% 10.8% 11.3%
Investment Strategy Yield LT Consensus Growth DS Phoenix 3.7% 12.3% 16.0% High-Yield 2.8% 11.2% 14.0% Value 2.1% 11.9% 14.0% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% High-Yield + Growth 1.7% 11.0% 12.7% Safe Midstream 6.1% 6.2% 12.3% Safe Midstream + Growth 3.3% 8.5% 11.8% Nasdaq (Growth) 0.5% 10.8% 11.3% Dividend Aristocrats 2.3% 8.9% 11.2% REITs + Growth 1.8% 8.9% 10.6% REITs 3.0% 6.9% 9.9% S&P 500 1.4% 8.5% 9.9% 60/40 Retirement Portfolio 1.8% 5.1% 6.9%
(Source: Morningstar, FactSet Research)
Why don't I just buy the S&P 500?
I actually do own a bit of VOO as well as QQQ and two other tech-focused ETFs, part of my speculative allocation (to help avoid FOMO and stay disciplined with the rest of my portfolio).
Each month I buy $1,000 worth of these 4 index ETFs, as part of my overall dollar-cost-averaging strategy (which uses up about 20% of my savings).
But unlike most people, the core of my portfolio are individual stocks, precisely so I can achieve exceptional fundamentals for my needs and risk profile.
And remember that my portfolio is 19% undervalued and trading at 14X earnings, with a PEG of just 1.15 vs 2.48 for the S&P 500, which yields just 1.4%.
That means that analysts believe my portfolio could enjoy an extra 4.3% higher returns over the next five years if all my companies returned to fair value.
DS Phoenix Portfolio Fundamentals Metric Yield 3.66% LT Growth Forecast 12.32% Discount To Fair Value 19% 5-Year Annual Valuation Boost 4.30% 5-Year Consensus Total Return Potential 20.28% 5-Year Risk-Adjusted Expected Total Return 15.14% LT Consensus Total Return Potential 15.98% S&P 500 5-Year Risk-Adjusted Expected Return 3.94% DS Phoenix Risk-Adjusted Return/S&P 500 Risk-Adjusted Expected Return 3.84 S&P 500 Consensus LT Total Return Potential 9.9% Dividend Aristocrats Consensus LT Total Return Potential 11.2% Nasdaq Consensus LT Total Return Potential 11.3% DS Video Phoenix LT Consensus Total Return Potential/S&P 500 Consensus LT Total Return Potential 161% DS Video Phoenix LT Consensus Total Return Potential/Dividend Aristocrats Consensus LT Total Return Potential 143% DS Video Phoenix LT Consensus Total Return Potential/Nasdaq Consensus LT Total Return Potential 141% Annual Income $45,577.55 Average Monthly Income $3,798.13 Average Daily Income (Including Holidays) $124.87 Average Hourly Income $5.20 Average Income/Minute $0.09 Average Income/Second $0.0014
(Source: Dividend Kings Real Money Phoenix Portfolio Tool)
A river of safe and growing dividends helps me to stay disciplined while I wait for my companies to work hard for me, so one day I don't have to.
The 5-year risk-adjusted expected returns are 15% CAGR, more than the market delivered in the last decade and the 5-year consensus return is a Buffett-like 20% CAGR.
Think these are pie in the sky fantasy forecasts?
My Top 5 Holding Returns Since 2002 (Annual Rebalancing)
You don't get returns like this, or enjoy safe income like this, by primarily owning index funds.
- yield in 2002: 4.2%
- the yield on cost today: 246%
So let's take a closer look at why I, and analysts, expect Amazon, British American, Alibaba, Magellan, and Enbridge to keep delivering exceptional safe income and market and aristocrat smashing returns, for years and decades to come.
Amazon: The King Of Hyper-Growth At A Wonderful Price
- Daily Blue-Chip Deal Video: Amazon Represents Hyper-Growth At A Wonderful Price
- Daily Blue-Chip Deal Video Special Report: Preparing For The Next Correction
This is an exclusive comprehensive deep-dive analysis of AMZN's safety, dependability, quality, valuation, and short, medium, and long-term return potential.
This video article provides a comprehensive analysis of the risk profile, courtesy of 58 experts who have studied this business for decades and know it better than anyone other than management.
Amazon Fundamentals
Balance Sheet Safety score: 82% - 5/5- very safe (AA credit rating = 0.29% 30-year bankruptcy risk)
Dependability score: 75% - 4/5 - very dependable
Quality score: 79% - 12/13 Super SWAN (Sleep Well At Night)
Long-term risk management consensus: 46th industry percentile - average
2021 average fair value: $3,820.81
2022 average fair value: $5,390.48
12-month blended forward harmonic average fair value: $4,998.06
Current Price: $3,281.50
Discount To Fair Value/Margin of safety: 34.34%
DK rating: potential very strong buy
LT Consensus Total Return Potential
Investment Strategy Yield LT Consensus Growth Amazon 0.0% 31.3% 31.3% High-Yield 2.8% 11.2% 14.0% Value 2.1% 11.9% 14.0% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% High-Yield + Growth 1.7% 11.0% 12.7% Safe Midstream 6.1% 6.2% 12.3% Safe Midstream + Growth 3.3% 8.5% 11.8% Nasdaq (Growth) 0.5% 10.8% 11.3% Dividend Aristocrats 2.3% 8.9% 11.2% REITs + Growth 1.8% 8.9% 10.6% REITs 3.0% 6.9% 9.9% S&P 500 1.4% 8.5% 9.9% 60/40 Retirement Portfolio 1.8% 5.1% 6.9%
(Source: Morningstar, FactSet Research)
But you don't have to wait for decades for Amazon to deliver very strong returns.
2026 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
Amazon Investment Decision Score
Exceptional
Ticker AMZN DK Quality Rating 12 79% Investment Grade A+ Sector Consumer Discretionary Safety 5 82% Investment Score 100% Industry Internet & Direct Marketing Retail Dependability 4 75% 5-Year Dividend Return 0.00% Sub-Industry Internet & Direct Marketing Retail Business Model 3 Today's 5+ Year Risk-Adjusted Expected Return 18.80% Super SWAN, Phoenix, Top Buy, Hyper-Growth Goal Scores Scale Interpretation Valuation 4 Very Strong Buy AMZN's 34.27% discount to fair value earns it a 4-of-4 score for valuation timeliness Preservation of Capital 7 Excellent AMZN's credit rating of AA implies a 0.51% chance of bankruptcy risk and earns it a 7-of-7 score for Preservation of Capital Return of Capital N/A N/A N/A Return on Capital 10 Exceptional AMZN's 18.80% vs. the S&P's 4.07% 5-year risk-adjusted expected return (RAER) earns it a 10-of-10 Return on Capital score Total Score 21 Max score of 21 S&P's Score Investment Score 100% 73/100 = C(Market Average) Investment Letter Grade A+
(Source: DK Automated Investment Decision Tool)
Amazon, with a valuation that's 60% better than the S&P 500's, and 4.5X the risk-adjusted expected returns, is as close to a perfect hyper-growth blue-chip investment as you can find on Wall Street today.
British American Tobacco: This Global Aristocrat Is Trading At Its Best Valuation In 20 Years
This is an exclusive comprehensive deep-dive analysis of BTI's safety, dependability, quality, valuation, and short, medium, and long-term return potential.
This video article provides a comprehensive analysis of the risk profile, courtesy of 27 experts who have studied this business for decades and know it better than anyone other than management.
BTI Fundamentals
Dividend Safety score: 79% - 5/5- very safe (0.5% average recession cut risk, 2.2% pandemic level recession cut risk)
Dependability score: 81% - 5/5 exceptional dependability
Quality score: 80% - 12/13 Super SWAN (Sleep Well At Night)
Long-term risk management consensus: 81st industry percentile - very good
2021 average fair value: $70.02
2022 average fair value: $69.48
12-month blended forward harmonic average fair value: $69.62
Current Price: $35.15
Discount To Fair Value/Margin of safety: 49.51%
DK rating: potential ultra-value/anti-bubble/Buffett-style "fat pitch"
LT Consensus Total Return Potential
Investment Strategy Yield LT Consensus Growth British American Tobacco 8.5% 4.2% 12.7% Safe Midstream 6.1% 6.2% 12.3% Safe Midstream + Growth 3.3% 8.5% 11.8% REITs 3.0% 6.9% 9.9% High-Yield 2.8% 11.2% 14.0% Dividend Aristocrats 2.3% 8.9% 11.2% Value 2.1% 11.9% 14.0% 60/40 Retirement Portfolio 1.8% 5.1% 6.9% REITs + Growth 1.8% 8.9% 10.6% High-Yield + Growth 1.7% 11.0% 12.7% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% S&P 500 1.4% 8.5% 9.9% Nasdaq (Growth) 0.5% 10.8% 11.3%
(Source: Morningstar, FactSet Research)
2026 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
BTI Investment Decision Score
Excellent
Ticker BTI DK Quality Rating 12 80% Investment Grade A Sector Consumer Staples Safety 4 79% Investment Score 97% Industry Tobacco Dependability 5 81% 5-Year Dividend Return 52.86% Sub-Industry Tobacco Business Model 3 Today's 5+ Year Risk-Adjusted Expected Return 14.81% Super SWAN, Phoenix, Top Buy, Strong ESG Goal Scores Scale Interpretation Valuation 4 Ultra-Value Buy BTI's 49.44% discount to fair value earns it a 4-of-4 score for valuation timeliness Preservation of Capital 6 Above Average BTI's credit rating of BBB+ implies a 5% chance of bankruptcy risk and earns it a 6-of-7 score for Preservation of Capital Return of Capital 10 Exceptional BTI's 52.86% vs. the S&P's 9.27% 5-year potential for return via dividends earns it a 10-of-10 Return of Capital score Return on Capital 10 Exceptional BTI's 14.81% vs. the S&P's 4.05% 5-year risk-adjusted expected return (RAER) earns it a 10-of-10 Return on Capital score Total Score 30 Max score of 31 S&P's Score Investment Score 97% 73/100 = C(Market Average) Investment Letter Grade A
(Source: DK Automated Investment Decision Tool)
With a safe yield that's 6X that of the S&P and 4X the risk-adjusted expected returns, BTI is one of the best high-yield blue-chips you can buy today.
Magellan Midstream Partners (Uses A K-1 Tax Form): The Highest Safe Yield On Wall Street
This is an exclusive comprehensive deep-dive analysis of MMP's safety, dependability, quality, valuation, and short, medium, and long-term return potential.
This video article provides a comprehensive analysis of the risk profile, courtesy of 25 experts who have studied this business for decades and know it better than anyone other than management.
Magellan Fundamentals
Distribution Safety score: 82% - 5/5- very safe (0.5% average recession cut risk, 2.0% pandemic level recession cut risk)
Dependability score: 83% - 5/5 - exceptional dependability
Quality score: 82% - 13/13 Super SWAN (Sleep Well At Night)
Long-term risk management consensus: 40% - below-average
2021 average fair value: $72.72
2022 average fair value: $73.87
12-month blended forward harmonic average fair value: $73.58
Current Price: $45.61
Discount To Fair Value/Margin of safety: 38.02%
DK rating: potential ultra-value/anti-bubble/Buffett-style "fat pitch"
LT Consensus Total Return Potential
Investment Strategy Yield LT Consensus Growth Magellan 9.0% 3.4% 12.4% Safe Midstream 6.1% 6.2% 12.3% Safe Midstream + Growth 3.3% 8.5% 11.8% REITs 3.0% 6.9% 9.9% High-Yield 2.8% 11.2% 14.0% Dividend Aristocrats 2.3% 8.9% 11.2% Value 2.1% 11.9% 14.0% 60/40 Retirement Portfolio 1.8% 5.1% 6.9% REITs + Growth 1.8% 8.9% 10.6% High-Yield + Growth 1.7% 11.0% 12.7% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% S&P 500 1.4% 8.5% 9.9% Nasdaq (Growth) 0.5% 10.8% 11.3%
(Source: Morningstar, FactSet Research)
2026 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
MMP Investment Decision Score
Excellent
Ticker MMP DK Quality Rating 13 82% Investment Grade A Sector Energy Safety 5 82% Investment Score 97% Industry Oil, Gas & Consumable Fuels Dependability 5 88% 5-Year Dividend Return 50.21% Sub-Industry Oil & Gas Storage & Transportation Business Model 3 Today's 5+ Year Risk-Adjusted Expected Return 11.66% Ultra SWAN, Phoenix, Top Buy, Safe Midstream Goal Scores Scale Interpretation Valuation 4 Ultra-Value Buy MMP's 38.10% discount to fair value earns it a 4-of-4 score for valuation timeliness Preservation of Capital 6 Above Average MMP's credit rating of BBB+ implies a 5% chance of bankruptcy risk, and earns it a 6-of-7 score for Preservation of Capital Return of Capital 10 Exceptional MMP's 50.21% vs. the S&P's 9.27% 5-year potential for return via dividends earns it a 10-of-10 Return of Capital score Return on Capital 10 Exceptional MMP's 11.66% vs. the S&P's 4.05% 5-year risk-adjusted expected return (RAER) earns it a 10-of-10 Return on Capital score Total Score 30 Max score of 31 S&P's Score Investment Score 97% 73/100 = C(Market Average) Investment Letter Grade A
(Source: DK Automated Investment Decision Tool)
MMP offers 6.5x the market's yield and 3x the risk-adjusted expected returns, making it one of the best high-yield blue-chips you can buy today.
Alibaba: The Best Time In History To Buy The Tech King Of China
This is an exclusive comprehensive deep-dive analysis of BABA's safety, dependability, quality, valuation, and short, medium, and long-term return potential.
This video article provides a comprehensive analysis of the risk profile, courtesy of 68 experts who have studied this business for decades and know it better than anyone other than management.
Alibaba Fundamentals
Balance Sheet Safety score: 77% - 4/5- very safe (A+ stable credit ratings from S&P, Fitch, Moody's = 0.6% 30-year bankruptcy)
Dependability score: 59% - 3/5 - average
Quality score: 67% - 10/13 speculative blue-chip
Long-term risk management consensus: 24th industry percentile - poor
2021 average fair value: $317.95
2022 average fair value: $358.00
12-month blended forward harmonic average fair value: $347.99
Current Price: $147.93
Discount To Fair Value/Margin of safety: 57.49%
DK rating: potential speculative ultra-value/fat pitch
LT Consensus Total Return Potential
Investment Strategy Yield LT Consensus Growth Alibaba 0.0% 24.0% 24.0% High-Yield 2.8% 11.2% 14.0% Value 2.1% 11.9% 14.0% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% High-Yield + Growth 1.7% 11.0% 12.7% Safe Midstream 6.1% 6.2% 12.3% Safe Midstream + Growth 3.3% 8.5% 11.8% Nasdaq (Growth) 0.5% 10.8% 11.3% Dividend Aristocrats 2.3% 8.9% 11.2% REITs + Growth 1.8% 8.9% 10.6% REITs 3.0% 6.9% 9.9% S&P 500 1.4% 8.5% 9.9% 60/40 Retirement Portfolio 1.8% 5.1% 6.9%
(Source: Morningstar, FactSet Research)
BABA 2026 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
BABA 2026 Consensus Total Return Potential (PEG 1)
(Source: FAST Graphs, FactSet Research)
Alibaba Investment Decision Score
Exceptional
Ticker BABA DK Quality Rating 10 67% Investment Grade A+ Sector Consumer Discretionary Safety 4 77% Investment Score 100% Industry Internet & Direct Marketing Retail Dependability 3 59% 5-Year Dividend Return 0.00% Sub-Industry Internet & Direct Marketing Retail Business Model 3 Today's 5+ Year Risk-Adjusted Expected Return 24.09% Blue-Chip, Phoenix, Speculative, Hyper-Growth Goal Scores Scale Interpretation Valuation 4 Ultra-Value Buy BABA's 57.59% discount to fair value earns it a 4-of-4 score for valuation timeliness Preservation of Capital 7 Excellent BABA's credit rating of A+ implies a 0.60% chance of bankruptcy risk, and earns it a 7-of-7 score for Preservation of Capital Return of Capital N/A N/A N/A Return on Capital 10 Exceptional BABA's 24.09% vs. the S&P's 3.94% 5-year risk-adjusted expected return (RAER) earns it a 10-of-10 Return on Capital score Total Score 21 Max score of 21 S&P's Score Investment Score 100% 73/100 = C(Market Average) Investment Letter Grade A+
(Source: DK Automated Investment Decision Tool)
Alibaba is as close to a perfect speculative hyper-growth blue-chip investment as exists on Wall Street.
Enbridge: The Only Midstream Dividend Aristocrat (So Far)
This is an exclusive comprehensive deep-dive analysis of ENB's safety, dependability, quality, valuation, and short, medium, and long-term return potential.
This video article provides a comprehensive analysis of the risk profile, courtesy of 32 experts who have studied this business for decades and know it better than anyone other than management.
Enbridge Fundamentals
Dividend Safety score: 84% - 5/5- very safe (0.5% average recession cut risk, 1.9% pandemic level recession cut risk)
Dependability score: 83% - 5/5 exceptional dependability
Quality score: 82% - 13/13 Ultra SWAN (Sleep Well At Night)
Long-term risk management consensus: 87th industry percentile - very good
2021 average fair value: $44.52
2022 average fair value: $48.47
12-month blended forward harmonic average fair value: $47.48
Current Price: $39.78
Discount To Fair Value/Margin of safety: 16.22%
DK rating: potential strong buy
LT Consensus Total Return Potential
Investment Strategy Yield LT Consensus Growth Enbridge 6.7% 6.6% 13.3% Safe Midstream 6.1% 6.2% 12.3% Safe Midstream + Growth 3.3% 8.5% 11.8% REITs 3.0% 6.9% 9.9% High-Yield 2.8% 11.2% 14.0% Dividend Aristocrats 2.3% 8.9% 11.2% Value 2.1% 11.9% 14.0% 60/40 Retirement Portfolio 1.8% 5.1% 6.9% REITs + Growth 1.8% 8.9% 10.6% High-Yield + Growth 1.7% 11.0% 12.7% Dividend Aristocrats + Growth 1.4% 12.3% 13.7% S&P 500 1.4% 8.5% 9.9% Nasdaq (Growth) 0.5% 10.8% 11.3%
(Source: Morningstar, FactSet Research)
2026 Consensus Total Return Potential
(Source: FAST Graphs, FactSet Research)
ENB Investment Decision Score
Excellent
Ticker ENB DK Quality Rating 13 82% Investment Grade A Sector Energy Safety 5 84% Investment Score 97% Industry Oil, Gas & Consumable Fuels Dependability 5 83% 5-Year Dividend Return 40.03% Sub-Industry Oil & Gas Storage & Transportation Business Model 3 Today's 5+ Year Risk-Adjusted Expected Return 11.40% Ultra SWAN, Phoenix, Top Buy, Safe Midstream, Strong ESG Goal Scores Scale Interpretation Valuation 4 Strong Buy ENB's 16.33% discount to fair value earns it a 4-of-4 score for valuation timeliness Preservation of Capital 6 Above Average ENB's credit rating of BBB+ implies a 5% chance of bankruptcy risk, and earns it a 6-of-7 score for Preservation of Capital Return of Capital 10 Exceptional ENB's 40.03% vs. the S&P's 9.27% 5-year potential for return via dividends earns it a 10-of-10 Return of Capital score Return on Capital 10 Exceptional ENB's 11.40% vs. the S&P's 4.05% 5-year risk-adjusted expected return (RAER) earns it a 10-of-10 Return on Capital score Total Score 30 Max score of 31 S&P's Score Investment Score 97% 73/100 = C(Market Average) Investment Letter Grade A
(Source: DK Automated Investment Decision Tool)
Enbridge has more than 4x the market's yield, the dependability of a dividend aristocrat (26-year dividend growth streak), and almost 3x the risk-adjusted expected returns of the S&P 500.
It's one of the best high-yield aristocrats you can buy today.
Bottom Line: The More They Fall The More I Buy, These 5 No-Brainer Blue-Chip Bargains Are Set To Fly
I'm not a market timer, merely a disciplined financial scientist. I can't tell you what the market will do in the short-term since just 5% of 12-month stock returns are due to fundamentals according to JPMorgan.
Total Returns Explained By Fundamentals/Valuations
Time Frame (Years) 1 Day 0.02% 1 month 0.4% 3 month 1.25% 6 months 2.5% 1 5% 2 16% 3 25% 4 33% 5 41% 6 49% 7 57% 8 66% 9 74% 10 82% 11+ 90% to 91%
(Sources: DK S&P 500 Valuation And Total Return Potential Tool, JPMorgan, Bank of America, Princeton, RIA)
- over 12 months luck is 20x as powerful as fundamentals
- over 11+ years fundamentals are 11x as powerful as luck
What I can tell you is that if anything is likely to cause a 10% to 20% correction as most analysts and economist expect relatively soon, it's probably going to be the debt ceiling crisis.
Fortunately, the consequences of defaulting on our debt are so terrible that everyone in DC agrees we must avoid it at all costs.
And while politicians are famous for doing very stupid things, for far longer than is reasonable, a sharp December 2018 style correction is likely to light a fire under Congress and make them do their jobs.
That's why the bond market, the so-called "smart money" on Wall Street, is pricing in the crisis being fully resolved by early December.
In the meantime I'm taking advantage of every market downturn, to buy more Amazon, Alibaba, British American, Magellan, and Enbridge, right up until my personal risk caps.
When it's raining gold, reach for a bucket, not a thimble" - Warren Buffett
Combining the world's best growth and high-yield blue-chips is one of the easiest, safest, and most dependable ways to retire rich, and stay rich in retirement.
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