In the 2022 bear market, dividend aristocrats are outperforming the S&P 500 by 2X and the Nasdaq by 3X, falling just 7% YTD.
But just as with the stock market in general, some aristocrats are still outrageously expensive while others are anti-bubble, Buffett-style “fat pitch” bargains.
These two blue-chips are the two most undervalued dividend champions on Wall Street, about 40% historically undervalued and trading at 8X cash-adjusted earnings, literally recession-level valuations.
They are priced for around -1% long-term growth, but analysts expect 15% long-term growth, including double-digit growth for the next five years.
Over the next three to five years, analysts believe these anti-bubble aristocrat bargains could potentially deliver 20% to 35% annual returns, basically tripling in the next five years, and outperform the S&P 500 by 4X to 6X.