4 Dividend Blue-Chips That Could Save You A Fortune During The Next Market Crash

Summary

• Vaccine/Stimulus/Economic Boom euphoria has sent the S&P 500 soaring to 36% historically overvalued levels. The market is now pricing in three years of growth and medium-term return potential is pathetic.
• Deutsche Bank just warned of a likely 6% to 10% market decline within the next three months.
• Their reasoning is sound and high market valuations increase the risk of such a historically average pullback.
• Low volatility blue-chips can be a great way to reduce overall portfolio volatility and let you sleep well at night, remaining calm, rational, and disciplined.
• KMB, GIS, ED, and BDX are the four lowest volatility blue-chips trading at reasonable valuations right now. Combined they yield a very safe 3.0%, are 2% undervalued, and analysts expect them to deliver 8.3% annual long-term total returns, slightly above the highly overvalued market. While no dividend stock is a bond alternative, these four names represent reasonable and prudent low volatility dividend blue-chips that JPMorgan Asset Management estimates will fall approximately 50% less during the next market downturn, about 4.8% rather than 8%.
• Looking for a helping hand in the market? Members of The Dividend Kings get exclusive ideas and guidance to navigate any climate. Learn More »

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Analyst’s Disclosure:I am/we are long ED, KMB. 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 own ED and KMB in our portfolios.