{"id":69389,"date":"2023-10-06T07:23:14","date_gmt":"2023-10-06T11:23:14","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/buy-these-5-ridiculously-great-high-yield-dividend-aristocrat-bargains-with-both-hands\/"},"modified":"2023-10-06T07:23:24","modified_gmt":"2023-10-06T11:23:24","slug":"buy-these-5-ridiculously-great-high-yield-dividend-aristocrat-bargains-with-both-hands","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=69389","title":{"rendered":"Buy These 5 Ridiculously Great High-Yield Dividend Aristocrat Bargains With Both Hands"},"content":{"rendered":"
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Welcome to the great ratepocalypse of 2023.<\/p>\n

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Daily Shot<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

In over 20 years, we’ve never had a quarter where long-term rates rose faster than in Q3.<\/p>\n

As a result, utilities have been hammered, experiencing their 4th worst bear market in the last quarter century.<\/span><\/p>\n

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Ycharts<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

In fact, on Monday, October 2nd the entire utility sector fell 5% in a single day!<\/p>\n

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Ycharts<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

NextEra Energy (NEE) fell 9% in a single day. And no, the economy isn’t in lockdown, the financial markets are melting down, it’s just a spike in long-term interest rates that has popped a bubble.<\/p>\n

37X earnings for a utility?!<\/strong><\/em><\/p>\n

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FAST Graphs, FactSet<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

The 10-year median P\/E for utilities is 18.6, and at the peak of the utility bubble, the sector traded at 22X, an all-time high.<\/p>\n

Today, utilities trade at 14.8X forward earnings, a 20% historical sector discount.<\/p>\n

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Daily Shot<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Utilities are the 3rd most undervalued sector!<\/p>\n

For over five years, the sector was expensive, and now it’s not.<\/p>\n

If you’re not excited about buying utilities, you forget the most important lesson between investing and speculation.<\/p>\n

Only Speculators Hate Utilities Right Now<\/h2>\n

Short-term momentum traders, trying to score quick gains, are not the same as investors.<\/p>\n

Smart long-term investors don’t avoid buying a quality company at a historical discount just because of fear of further short-term losses.<\/p>\n

Short-term prices are vanity, cash flow is sanity, and dividends are reality.<\/p>\n

I understand how some utility, REIT, midstream, and yieldCo investors have suffered short-term losses and are shell shocked.<\/p>\n

Let me ask you three questions.<\/p>\n