7 Great High-Yield Blue Chips For Uncertain Times Like These

Summary

• The world is watching the Wuhan viral outbreak with understandable concern.
• The S&P 500 is now 16% to 21% historically overvalued and anything that fuels anxiety about global economic growth could trigger a pullback/correction.
• Prudent risk management involves never knowingly overpaying for a company, no matter its quality, as well as having the right asset allocation in your SWAN portfolio.
• Today XOM, CAT, CFR, CHRW, MRK, UNM, and NFG represent very high quality high-yield blue chips with very safe dividends, reasonable to attractive valuations, and an average long-term growth consensus of 10%.
• For most people, annual portfolio rebalancing is a prudent risk management solution, with 26 years of market data showing it's the most tax-efficient way of managing portfolio risk across the market cycle.
• Looking for a helping hand in the market? Members of The Dividend Kings get exclusive ideas and guidance to navigate any climate. Get started today »

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After being medically retired from the Army Medical Services Corps, I needed some way to serve my country in another capacity. Fortunately, a lifelong (I've been investing since the age of 9) love of stocks helped me find my second calling.

Over six years as an analyst, I've been blessed to work with numerous other mentors such as Brad Thomas, and Chuck Carnevale, and I've honed my craft in terms of safe dividend growth stock analysis and valuation.

This has culminated in becoming a founding member of the Dividend Kings and building what I consider to be my life's greatest accomplishment, the Master List.

• 369 companies (capped at 400 which we'll have in about a month)
• average quality: 9.0/11 (blue chip quality) - average aristocrat 9.7
• average dividend safety: 4.4/5 above-average - average aristocrat 4.7

The list began as a reference tool for members to know a company's fair value in any given year. It has grown steadily over time to include

• sector
• yield
• quality
• dividend safety
• yield
• discount to fair value
• potential sell/trim prices
• long-term return potential range
• dividend growth streaks
• 5-year dividend growth rates
• long-term consensus growth rate
• forward PE/cash flow
• PEG ratio
• ROC (absolute or industry percentile) - Greenblatt's favorite quality proxy

In a few months, after I complete the 2020 update process on all 400 companies, I'll add two more columns that will be screenable by our members.

• S&P credit rating (if a company has one)
• long-term beta (volatility)

Being able to bring readers reasonable and prudent dividend growth ideas, screened from this powerful research tool, is now my new life's mission.

Along the way, I'll also be imparting time tested and valuable economic lessons that can help you become a better steward of your savings, and maximize your ability to accomplish your

Analyst’s Disclosure:I am/we are long CAT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Dividend Kings owns XOM, CAT, CFR, CHRW, and UNM in our portfolios.