3 Fast-Growing, High-Yield Dividend Stocks That Are Outrageously Undervalued

Seeking AlphaDividend Quick Picks | Financials 3 Fast-Growing, High-Yield Dividend Stocks That Are Outrageously UndervaluedOct. 1, 2020 8:45 AM ET|| Includes: LNC, OZK, UNMby: Dividend SenseiDividend Sensei The Dividend KingsDividend ideas from a top team of analysts to help you sleep well at night.SummaryThe current pullback has barely dented the current market bubble, with the S&P 500 still 40% historically overvalued.
Moody's is now forecasting long-term interest rates rising to 4.1% by the end of 2030, and expects a lost decade for stocks.
Most economists only expect long-term rates to return to 2% to 3% once the pandemic is over and the economy recovers.
That's still bad news for high flying outrageously overvalued momentum stocks, whose lofty multiples are being levitated by TINA mentality.
Fortunately, there are many quality anti-bubble companies to choose from, including UNM, LNC, and OZK. These 3 stocks yield 5% to 7%, are expected to grow 9% to 12% CAGR over time, and are 60% to 66% undervalued. If long-term rates rise, these three companies could deliver 27% to 34% CAGR long-term returns, and become three of the hottest stocks of the next decade.

The current pullback has done little to alleviate the broader market's overvaluation problem.
S&P 500 Valuation Profile
Year EPS Consensus YOY Growth Forward PE Blended PE Overvaluation (Forward PE) Overvaluation (Blended PE) 2020 $130.14 -20% 25.8 24.0 57% 41% 2021 $166.48 28% 20.2 23.0 23% 35% 2022 $189.64 14% 17.7 19.0 8% 12% 12-month forward EPS 12 Month Forward PE Historical Overvaluation PEG 20-Year Average PEG S&P 500 Dividend Yield 25-Year Average Dividend Yield $146.27 23.0 40% 2.70 2.35 1.79% 2.06%
(Sources: Dividend Kings S&P 500 Valuation & Total Return Potential Tool, F.A.S.T. Graphs, FactSet Research, Brian Gilmartin, Reuters/Refinitiv/IBES/Lipper Financial, JPMorgan, Ed Yardeni, Multipl.com)
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