PII - Becton Dickinson And Polaris: The Market Is Dead Wrong About These Dividend Aristocrat Bargains

2024-06-01 07:00:00 ET

Summary

• Value investing may be out of favor due to the success of tech darlings like Nvidia and Amazon.
• However, value investing can still be done safely and responsibly, and generate exceptional returns, including 15% to 25% annual returns over several years.
• Dividend aristocrats like Becton, Dickinson and Polaris are trading at 52-week lows and present potentially attractive buying opportunities.
• BDX is 17% undervalued and PII is at a 40% discount, creating opportunities for potential gains in the next year.
• BDX and PII are classic examples of how even in a strong bull market, with markets near record highs, deep value income growth investors can find bargains among firms legendary for their dividend dependability.

Given the blockbuster returns from tech darlings like Nvidia ( NVDA ), value investing might be out of favor.

Don't get me wrong—I also own a lot of Nvidia and Amazon ( AMZN ). However, my portfolio is currently slightly tilted toward growth because combining yield and growth is the best way to optimize long-term income growth.

That's because, according to Schwab, total return is a strong proxy for long-term income growth ....

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