7 Reasons VMware Is One Of The Best Hyper-Growth Blue-Chips You Can Buy

Aug. 23, 2021 1:55 AM ETVMware, Inc. (VMW) StockVMW34 Comments
Dividend Sensei
Investing Group

Summary

  • Tech stocks have been on fire in the past decade, up over 500%, resulting in a growth stock bubble.
  • Fortunately, it's always a market of stocks, not a stock market, and quality blue-chips for any need, risk profile, and time horizon, are always available.
  • VMware is an industry leader in hybrid-cloud digitization, and aggressive growth spending is expected to drive 16.3% CAGR growth over time.
  • VM is currently in its 3rd worst bear market ever, making it 24% undervalued, and capable of delivering up to 218% total returns over the next five years.
  • Over the long term, VMW is expected to deliver 16.3% CAGR total returns, slightly exceeding those of the much more overvalued Nasdaq. It represents a potential 90% A- very good long-term hyper-growth blue-chip opportunity for anyone comfortable with the risk profile.
  • This idea was discussed in more depth with members of my private investing community, The Dividend Kings. Learn More »

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Growth has been red hot in the past decade with the Nasdaq delivering more than 6x returns.

Of course, that has many investors worried about a potential tech bubble 2.0, and for good reason. Some of today's most popular

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This article was written by

Dividend Sensei
115.74K Followers

Dividend Sensei (Adam Galas) is an Army veteran and stock analyst with 20+ years of market experience.

He is a founding author of the investing group The Dividend Kings which focuses on helping investors safeguard and grow their money in all market conditions through the highest-quality dividend investments. Dividend Sensei and the team of analysts (Brad Thomas, Justin Law, Nicholas Ward, Chuck Carnevale, and Sebastian Wolf) help members invest more intelligently in dividend stocks. Features include: 13 model portfolios, buy ideas, company research reports, and a thriving chat community for readers looking to learn how to invest more intelligently in dividend stocks. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VMW either through stock ownership, options, or other derivatives. 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 VMW in our portfolios.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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