Summary
- The worst correction in a decade has left lots of blue-chips trading at attractive prices.
- Bristol-Myers Squibb has been pummelled especially hard due to negative pharma sentiment plus now worries over its upcoming $90 billion Celgene acquisition.
- While there are plenty of risks facing Bristol (and all drug makers), the deal makes great strategic sense and the company's track record on M&A is strong.
- Today Bristol represents a Grade A pharma blue-chip that's at least 25% undervalued, creating a great long-term buying opportunity.
- From today's prices, Bristol should be able to deliver about 17% to 20% long-term total returns, making it one of the best dividend growth stocks you can buy.
(Source: imgflip)
There's nothing like the worst correction in a decade to put great dividend growth stocks on sale. That's especially true when industry/company specific news combines to create a perfect storm of negativity that makes for truly sensational bargains of even the highest-quality blue-chips.
My new Deep Value Dividend Growth Portfolio (beating the market by 7.8% so far) is specifically designed to buy low-risk SWAN stocks like Bristol-Myers (BMY) at precisely times like these.
Bristol shares have been hammered recently, not just due to the recent market correction, but especially since news broke that it was planning a $90 billion merger (including debt) with Celgene (CELG). In fact, on the day the acquisition was announced BMY shares plunged 14%.
