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13 High-Yield, Low Volatility Blue-Chip Bargains Retirees Will Love

Published Wed, 02 Sep 2020 18:21:01 -0400 on Seeking Alpha

Seeking AlphaDividend Quick Picks13 High-Yield, Low Volatility Blue-Chip Bargains Retirees Will LoveSep. 2, 2020 6:21 PM ET|| Includes: AROW, CB, DUK, ED, EVRG, IBM, MO, SO, SWX, T, TRP, TRV, UGIby: Dividend SenseiDividend Sensei The Dividend KingsDividend ideas from a top team of analysts to help you sleep well at night.SummaryThe TINA/FOMO bubble grows larger by the day, with the S&P 500 now trading 49% overvalued and hitting the highest valuations in 20 years.
Speculative manias are all around us, and many investors are becoming euphoric, creating the conditions for a potential retirement destroying reckoning when the music finally stops.
Low volatility high-yield blue-chips have historically been a great strategy to grow both income and wealth, while achieving superior returns and with less volatility to boot.
Today EVRG, SO, ED, DUK, UGI, T, AROW, TRP, TRV, CB, MO, SWX, and IBM represent 13 high-yield, low volatility blue-chips retirees can safely buy even in the 2nd biggest bubble in US history.
They yield an average of 4.6%, have annual volatility of 17% vs 27% for average companies, are 11% undervalued, and expected to deliver 9.5% CAGR probability-weighted returns over the next 5 years vs 2.6% CAGR for the S&P 500. In my next article, I'll do deep-dive videos on the best bargains among these 13 and show you how to build the ultimate bubble crash-proof bunker SWAN retirement portfolio.
(Source: Imgflip)
To say that we live in interesting times is an understatement. 2020 has been a year of many unprecedented things including the fastest bear market in history and the strongest bear market rally in history.

Today the same risk factors that have driven such wild returns this year are still with us and expected to persist for the next one to two years.
And as far as income investors are concerned, this has been an especially grisly year.
LONDON: The coronavirus crisis will see the world's biggest firms... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
AT&T 38.38   16.1 2.38 2.04 5.43
IBM 143.62   14.8 9.68 6.48 4.47
SOUTHERN COMPANY 59.99   14.0 4.28 2.48 4.19
DUKE ENERGY 94.96   21.0 4.52 3.78 4.02
CONSOLIDATED EDISON 90.19   21.4 4.21 2.96 3.31
TRANSCANADA 49.89   14.6 3.42 2.25 3.14
ARROW FINANCIAL 35.31   14.4 2.46 1.04 3.09
UGI 49.31   26.4 1.87 1.30 2.67
SOUTHWEST GAS 91.84   24.2 3.79 2.18 2.43
TRAVELERS 148.30   14.8 10.03 3.28 2.24
CHUBB 160.10   19.6 8.15 3.00 1.88


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