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You Might Not See a Discount Like This for Another Decade

The market is on fire, and many investors are worried about missing out.

But what if I told you there was a safe way to buy the world’s best dividend stocks at a deep discount?

Right now, there is a high-yield blue-chip investment that has been completely flat this year and is about to take off like a rocket.

With a safe yield and dividends growing twice as fast as the stock market.

Sound too good to be true? Impossible even?

Well thanks to the banking crisis, the baby was thrown out with the bath water.

Thriving regional banks that were in no danger of bankruptcy, were sold off by shareholders prematurely.

And now they are about to make a major comeback from historical lows.

Leaving us today with an incredible discounted investment opportunity.

Today I’ll share with you what this crazy awesome investment opportunity is and what I predict your returns will be if you buy it at the current price.

A Great High-Yield ETF That Could Change Your Life

So what is this crazy awesome investment opportunity?

It is the Schwab’s US Dividend Equity ETF (SCHD).

It is currently trading at a 20% discount, which is unheard of for high-quality ETFs.

A 15% discount is an incredibly rare opportunity, but a 20% discount occurs maybe once in a decade.

And this isn’t just any ETF. Schwab’s US Dividend Equity ETF is a 5-star gold-rated ETF by Morningstar.

For context, to receive a 5-star gold rating from Morningstar, a company has to have returns that are in the top 20% in comparison to its peers.

But SCHD’s historical returns are not just in the top 20% of its peers, they are in the top 3% of its peers. And that’s after adjusting for taxes.

SCHD selects the 100 best high-yield dividend blue chips with 10-year dividend growth streaks to ensure dependable income growth in good and bad times.

And it doesn’t stop there.

SCHD applies six more quality screens designed to measure how safe a company’s balance sheet is. In other words, it doesn’t just reward companies for high yield. SCHD makes sure to buy companies with the best, safe, high yield.

Five of those quality screens are proven alpha factors, investing strategies proven to result in long-term superior returns according to decades of market studies.

Wonderful Companies at Outrageously Great Prices

So what does buying 100 of the world’s best high-yield blue chips at a 20% historical discount potentially mean for you?

It means you could receive fantastic, once in a decade, returns from SCHD.

Just take a look at the chart below.

The Last Time SCHD Was This Undervalued

Time Frame (Years) Annual Returns Total Returns
1 68% 68%
3 24% 90%
5 17% 122%
7 14% 155%
10 15% 317%

(Source: Portfolio Visualizer Premium)

The last time SCHD was this cheap, it went on to return 68% within a year. That was eight years ago back in 2015.

It almost doubled over three years. And based on the data, it will be up 317% by 2025.

Now, SCHD bottomed in October of 2022 but hasn’t fully recovered… yet.

I predict this ETF could deliver 350% returns over the next decade.

In a dangerous market bubble, when some popular stocks are now set up for 60% crashes, or more, SCHD is a coiled spring.

One that offers a very safe 3.6% yield and 15% historical dividend growth.

Growth that’s expected to continue for the next decade when it could more than quadruple, leaving the S&P 500 and even the Nasdaq in the dust.

The companies in this ETF are world-beater blue chips you already know and love that have made investors very rich over time.

  • Broadcom (AVGO)

  • United Parcel Service (UPS)

  • Texas Instruments (TXN)

  • Home Depot (HD)

  • Cisco Systems (CSCO)

  • PepsiCo (PEP)

  • AbbVie (ABBV)

  • Coca-Cola Co (KO)

  • Amgen (AMGN)

  • Merck & Co (MRK)

And these are just the top 10 holding of Schwab’s US Dividend Equity ETF (SCHD).

So if you want to make annual returns of 68% or more over the next year or two and ride the recovery of SCHD from historical lows, now is the time to buy.

I predict an even greater upswing than what took place in 2015.

And if you are interested in honing in on one of SCHD’s strongest picks, one of the stocks listed above is currently in our Intelligent Income Investor portfolio.

We are currently up 373.7% after purchasing this stock in March of 2020 when everyone was afraid to buy.

So while SCHD is capable of Nasdaq-smashing returns over the next decade, our portfolio can bring you even greater profits.

To check out our Intelligent Income Investor service and receive another free pick, watch Brad Thomas’ presentation here.

Whichever route you choose to go, don’t miss out on all the opportunities you have right now.

You won’t see 5-star gold-rated ETFs like SCHD trading at a such a discount for very long.

Safe Investing,

Adam Galas
Analyst, Intelligent Income Daily