Buy The Dip: Near 7%-Yielding Blue Chips Getting Way Too Cheap

Samuel SmithInvesting GroupFollow5ShareSavePlay(15min)Comments(2)SummaryGlobal conflict is creating a massive disconnect between the long-term intrinsic value of blue-chip industrials and their current discounted share prices.While short-term energy headwinds are pressurizing margins, internal cost-cutting initiatives and synergy captures are set to drive a massive earnings inflection.These two industry titans now offer dividend yields approaching 7%, backed by investment-grade balance sheets and mission-critical global infrastructure.Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More »The United States-Israel war in Iran that began in late February has sent oil (USO)(XLE) prices soaring due to a major disruption of the global energy supply chain, as about 20% of the supply chain flows through the Strait of Hormuz. It is therefore expected that many industries whose input and operating costs are sensitive to oil and gas prices will likely experience some profit margin headwinds, at least in the near term. As a result, the market reacts as it typically does to such circumstances: with a panicked attitude, sending several high-quality blue-chip dividend stocks, including United Parcel Service (UPS) and Amcor (AMCR), significantly lower. However, I believe that this presents a highly compelling buying opportunity for long-term investors who are willing to wait out the noise by purchasing businesses with durable competitive moats, attractive and sustainable dividends, and long-term potential for margin expansion and ultimately substantial earnings per share and dividend per share growth. In this article, I will detail why.

Global Logistics Resilience and Scale UPS is the world's largest package delivery company, with 460,000 employees spread over 200 countries and territories that deliver about 20.8 million packages. UPS operates across three business segments: United States domestic, international business, and supply chain solutions. Its healthcare business is a very important part of its supply chain solutions business, as it generated $11.2 billion in revenue in 2025 and is expected to continue growing moving forward. Needless to say, given its incredible size and geographic reach, UPS has a very difficult-to-replicate set of assets that provide integrated end-to-end logistic solutions. In fact, the airline of UPS alone is one of the largest in the world. Meanwhile, its decades of doing business across such a vast network give it a treasure trove of industry-specific data as well as the economies of scale necessary to fully leverageThis article was written bySamuel Smith49.14K FollowersFollowSamuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value.

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