11 Amazing High-Yield Blue-Chip Buys I Just Made For My Retirement Portfolio

Seeking AlphaDividend Ideas11 Amazing High-Yield Blue-Chip Buys I Just Made For My Retirement PortfolioJul. 29, 2020 4:49 PM ET|| Includes: BNS, BTI, MGRC, MSM, PBA, SEIC, UGIby: Dividend SenseiDividend Sensei The Dividend KingsDividend ideas from a top team of analysts to help you sleep well at night.SummaryToday's bifurcated market has some companies in dangerous bubbles, while others are trading at their best valuations in 10-plus years.
This creates an incredible opportunity for disciplined long-term investors, whose focus is on quality first and prudent valuation and risk management always.
Every day I'm putting $500 to work into a quality blue chip, always a potentially good deal or better.
In the past two weeks, I've bought seven companies 11 times, following along with the Dividend Kings' Phoenix daily buys: BTI, MSM, UGI, PBA, MGRC, BNS, and SEIC.
These seven companies yield 4.8%, are 25% undervalued, have 7.9% CAGR long-term growth consensus forecasts, and an average probability-weighted five-year expected return of 14.1% vs. 14.4% CAGR actual total returns since 2000.


Today the Dividend Kings had their weekly conference call and Chuck Carnevale mentioned that never in his 50 years of asset management experience has he seen such a bifurcated market.
By which he means that some stocks are in extremely dangerous bubbles, like 11/11 quality Super SWAN dividend champions West Pharmaceutical Services.
West Pharmaceutical Services (WST): 191% Overvalued, 5 Year Total Return Potential -9% to -3% CAGR

(Source: F.A.S.T Graphs, FactSet Research)
70 times earnings for any company harkens back to the "Nifty Fifty" bubble of the late 1960s.
The delusion was that these companies were so good, it didn't matter what you paid for them; their inexorable growth would bail you out.
Obviously the problem was not with the companies but with the temporary insanity of money managers - proving again that stupidity... Read more