Last week, I showed you why a once-in-a-generation opportunity is coming for dividend stocks.
As we approach this stock market pivot point, dividend stocks are going to replace growth stocks as the hottest stocks of the next decade.
Here at Intelligent Income Daily, our goal is to make sure you don’t miss out on the greatest income-generating opportunities to safely grow your wealth.
Today, I am going to show you why now is the time to buy before those dividend stocks take off.
And I’ll give you one free pick to take advantage of the massive returns about to hit these stocks.
The Best Time to Buy in Two Decades
In a normal market, when growth and dividends are both valued, there is only one time you want to be buying dividend stocks.
When they are trading at steep discount…
This way you can capitalize on the recovery of the share price in addition to collecting and compounding those dividends over time.
But right now, the market isn’t normal. Growth stocks are way overvalued.
And to say that dividend stocks are currently trading at a steep discount is a laughable understatement.
Right now, dividend stocks are the most undervalued they’ve been in two decades.
Just take a look at the chart below.
This year, dividend stocks are almost as undervalued as they were during the dot-com bubble.
And what happened after the dotcom bubble?
You can see above that dividend stocks went on to gain 269% over the next decade.
And that includes dividend stocks overall – so the good, the bad, and the ugly. The best high-quality dividend blue-chip stocks soared 800% to 1,000% after the dot-com bubble.
And that’s exactly what our team here at Wide Moat Research is expecting to happen next.
So how can you capitalize on this?
The last time we had market conditions like today’s, the Nasdaq dropped 55% while one badass dividend stock soared 583%.
A 9% Yielding Dividend Aristocrat
With 800% Return Potential
Meet British American Tobacco (BTI), the largest tobacco company in the world founded in 1902.
It has a 23-year dividend growth streak with the safest dividend among the tobacco giants.
And today, it’s trading at 7x earnings, a 50% historical discount.
This has happened just once before in the last quarter century, at the peak of the tech bubble.
And here’s what happened…
The last great dividend mega rally kicked off, and British American took off like a rocket.
(Source: Portfolio Visualizer Premium)
And let me make sure you understand.
The last time British American was this undervalued it doubled in less than a year.
It tripled in three years.
It went up almost 6x in five years.
It turned $1 into $10.53 in the next seven years.
It turned $1 into $13.31 in the next ten years.
And over the next 15 years it turned $1 into $28.42 while the Nasdaq was flat.
You get the picture.
British American has an 800% return potential over the next decade and is currently yielding 9%.
And it top it all off, it will become a dividend aristocrat in 2025.
This deep value “fat pitch” ultra-yield bargain will run circles around the rest of the market and even deliver better returns than Amazon.
And if you want even more recommendations, there are so many fantastic dividend stocks at trading at ridiculously low prices right now.
Members of our Intelligent Income Investor service can access more than two dozen top ideas for the coming dividend mega rally.
A rally that could be just what you need to retire rich and stay rich in retirement.
To learn more about Intelligent Income Investor and find out the names of these other dividend stocks, click here.
Safe Investing,
Adam Galas
Analyst, Intelligent Income Daily