Cisco And Comcast: One Offers Buffett-Like Return Potential

Summary:

  • The regional banking crisis is likely to top the U.S. into a mild to average recession this year.
  • Stocks might sell off as much as 30% in the coming months. But Super SWANs like Cisco Systems and Comcast Corporation are great ways to ride out the coming economic storm.
  • Both are A or AA-rated recession-resistant businesses with steady cash flow, rock-solid balance sheets, adaptable management, and good to very good risk management.
  • Both offer 3+% yielding relatively safe dividends that grow every year.
  • But only one is so undervalued that it could more than double in three years and generate 100% higher inflation-adjusted income and wealth in the next 30 years. The last time this recession blue-chip was this undervalued, it delivered over 1200% returns in the following ten years.

open vault door and money dollars coming out.

tiero

This article was published on Dividend Kings on Monday, March 20th.

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The 2023 banking crisis continues with First Republic Bank (FRC) likely to be dead…or acquired by May 20th.

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Seeking Alpha

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Bloomberg

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Atlanta Federal Reserve

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FactSet Research Terminal

Earnings Decline S&P Trough Earnings X Blue-Chip Consensus PE of 16.8 Decline From Current Level Peak Decline From Record Highs
0% 227 3821 2.4% -20.7%
5% 216 3630 7.3% -24.7%
10% (consensus) 205 3439 12.2% -28.6%
13% (average since WWII) 198 3324 15.1% -31.0%
15% 193 3248 17.1% -32.6%
20% 182 3057 22.0% -36.6%

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FAST Graphs, FactSet

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FactSet Research Terminal

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FactSet Research Terminal

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FactSet Research Terminal

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FactSet Research Terminal

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FAST Graphs, FactSet

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FactSet Research Terminal

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FactSet Research Terminal

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FactSet Research Terminal

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FactSet Research

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YCharts

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Portfolio Visualizer Premium

Investment Strategy Yield LT Consensus Growth LT Consensus Total Return Potential
ZEUS Income Growth (My family hedge fund) 4.3% 9.9% 14.2%
Vanguard Dividend Appreciation ETF 2.0% 11.3% 13.3%
Schwab US Dividend Equity ETF 3.6% 9.4% 13.0%
Comcast 3.2% 9.5% 12.7%
Nasdaq 0.8% 10.9% 11.7%
Dividend Aristocrats 1.9% 8.5% 10.4%
Cisco 3.1% 7.3% 10.4%
S&P 500 1.7% 8.5% 10.2%
REITs 3.9% 6.1% 10.0%
60/40 Retirement Portfolio 2.1% 5.1% 7.2%

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Morningstar

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Morningstar


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Additional disclosure: I own $14,000 worth of CSCO and CMCSA via ETFs.


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