PM - 10 Buffett-Style Dividend Aristocrats Yielding As Much As 10%

2023-12-02 07:35:00 ET

Summary

• Stocks are having their best November in 43 years, and stocks are now 13% historically overvalued.
• But thankfully, smart investors can always find incredible Warren Buffett-style bargains, both of the deep value and "wonderful company at a fair price" variety.
• These 10 high-yield aristocrats average a 5.3% dividend, A-credit rating, and offer 12.6% long-term return potential, the same as the Nasdaq, but with 6X the much safer and more dependable yield.
• In the next decade, these aristocrats have almost 3X the return potential of the S&P 500, and analysts think they could deliver 300% returns, quadrupling your money.

It's the best November for stocks since 1980.

The Nasdaq (COMP.IND) is pushing 10% gains, and some analysts are now predicting 5000 S&P 500 (SP500) by year's end. That would be a new record high and almost 21 times forward earnings.

At 19X forward earnings today, stocks are 13% historically overvalued.

So, obviously, you should just sit in cash, earning your 5.5%, and avoid buying stocks, right?

In the last decade, when stocks were red-hot, delivering blockbuster 17% annual returns, the average investor achieved half that. That was due to market timing, in a dead simple (buy the index and ride the wave) Golden Age for making money.

A 60/40 buy-and-hold investor outperformed the market timing investor by 27% over the last decade.

Over the last two decades, the average investor has achieved 38% inflation-adjusted returns, while the market has tripled.

Its Always And Forever A Market Of Stocks, Not A Stock Market

We all want a great deal, no more so than Warren Buffett.

Be greedy when others are fearful."

Wait for a fat pitch and then swing for the fences."

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

What if you could find a wonderful company trading at a wonderful price?

Today, there are exchange-traded funds, or ETFs, that are trading at 10x earnings, 5X cash flow, and 6-7X cash-adjusted earnings.

COWZ Is The Gold Standard Buffett-Style Deep Value ETF

How cheap is 6X cash-adjusted earnings? In the first ten seasons of Shark Tank , Marc Cuban, a billionaire with the inside track to sweetheart deals, averaged 7X cash-adjusted earnings.

Today, you can buy not one but two ETFs trading at even better valuations for some of the world's best A-rated companies.

But Pacer US Cash Cows 100 ETF (COWZ) and VictoryShares Free Cash Flow ETF (VFLO) are not particularly high-yielding or consistent dividend payers. Income investors might want something more.

How's this for more?

• dividend aristocrats
• Ultra SWAN (wide moat aristocrat quality, as close to perfect as exists on Wall Street) quality
• high-yield (average of 5+% yield)
• undervalued.

If you could find such amazing companies, then you'd never have to worry about how expensive or cheap the market is.

If you could live off very safe dividends, you'd never have to worry about stock market corrections again.

Life would become a personal Utopia, a rich retirement dream funded by a steady tide of generous, safe, and exponentially rising dividends in all economic and market conditions.

Well, let me show you how to make such a wonderful dream a reality.

How To Find The Best High-Yield Buffett-Style Aristocrat Bargains

Here is how I have used our DK Zen Research Terminal to find the best high-yield Warren Buffett-style aristocrat bargains.

From 505 stocks in our Master List to the best blue-chip aristocrat bargains.

All in one minute, thanks to the DK Zen Research Terminal. This is how I find all my investment ideas.

The 10 Best Buffett-Style High-Yield Dividend Aristocrats To Buy Now

Here is the bottom line up front on these amazing Buffett-style high-yield aristocrats.

Fundamentals Summary

• yield: 5.3% (3X S&P 500 and 2% above SCHD or VYM)
• dividend safety: 85% safe (1.8% dividend cut risk)
• overall quality: 95% very low-risk Ultra SWAN aristocrats
• credit rating: A- stable outlook (3.43% 30-year bankruptcy risk)
• S&P LT Risk management global percentile: 71th = low risk (good risk management)
• long-term growth consensus: 7.4%
• long-term total return potential: 12.6% vs 10.2% S&P 500 and 12.5% Nasdaq
• discount to fair value: 20% discount (potential very strong buy) vs 13% overvaluation on S&P
• 10-year valuation boost: 2.3% annually
• 10-year consensus total return potential: 5.3% yield + 7.4% growth + 2.3% valuation boost = 14.9% vs 9% S&P
• 10-year consensus total return potential: = 301 % vs 137% S&P 500.

I've linked to articles providing more research about each of these Buffett-style high-yield dividend aristocrats, sorted in order of highest to lowest yield.

• Altria ( MO )
• Enbridge ( ENB )
• Enterprise Products Partners ( EPD ) - K1 tax form
• Philip Morris International ( PM )
• Federal Realty Investment Trust ( FRT )
• Essex Property Trust ( ESS )
• Kimberly-Clark ( KMB )
• Novartis ( NVS )
• Pepsi ( PEP )
• C.H. Robinson Worldwide ( CHRW )

Consensus Total Return Potential Through 2025

• if and only if each company grows as analysts expect
• and returns to historical market-determined fair value
• this is what you will make.

Altria

Enbridge

Enterprise Products Partners - K1 tax form

Philip Morris International

Federal Realty Investment Trust

Essex Property Trust

Kimberly Clark

Novartis

Pepsi

C.H Robinson Worldwide

S&P 500

Bottom Line: Buy The 10 Best Buffett-Style High-Yield Dividend Aristocrats And Enjoy Your Holidays!

If the market is down 20%, 30%, or even 50%, it's apparent to many investors that blue-chip bargains are bountiful.

But guess what? 66% of the time, the market is within 10% of record highs.

Today stocks are expensive, and that tells you only that future returns will be smaller.

You can't time corrections, and if you try you risk permanent and significant damage to your financial dreams.

But that's where the market of stocks, not the stock market comes in.

While the market is expensive individual blue-chip bargains of the highest quality are still available.

That's always the case. In March 2000, when Cisco was 130X earnings and NTAP was 4000X, Realty Income was 7X cash flow, and EPD was just 6X.

Dividend Aristocrats, Kings, and even Buffett-style Ultra SWANs are always and forever going on sale.

Today 10 companies represent the 10 best combinations of Buffett-style quality, value, and dividend aristocrat dependable yield.

• Altria
• Enbridge
• Enterprise Products Partners
• Philip Morris International
• Federal Realty Investment Trust
• Essex Property Trust
• Kimberly Clark
• Novartis
• Pepsi
• C.H Robinson Worldwide

Fundamentals Summary

• yield: 5.3% (3X S&P 500 and 2% above SCHD or VYM)
• dividend safety: 85% safe (1.8% dividend cut risk)
• overall quality: 95% very low-risk Ultra SWAN aristocrats
• credit rating: A- stable outlook (3.43% 30-year bankruptcy risk)
• S&P LT Risk management global percentile: 71th = low risk (good risk management)
• long-term growth consensus: 7.4%
• long-term total return potential: 12.6% vs 10.2% S&P 500 and 12.5% Nasdaq
• discount to fair value: 20% discount (potential very strong buy) vs 13% overvaluation on S&P
• 10-year valuation boost: 2.3% annually
• 10-year consensus total return potential: 5.3% yield + 7.4% growth + 2.3% valuation boost = 14.9% vs 9% S&P
• 10-year consensus total return potential: = 301 % vs 137% S&P 500.

For further details see: