Ronald Reed, a World War II vet from Vermont, built an $8 million fortune on a janitor’s salary.

Anne Scheiber, who never earned more than $4,000 per year and retired in 1947, donated $22 million to charity upon her death in 1995.

How did they do this?

They invested in dividend blue-chips. You can read about their stories in more detail here.

Ronald Reed invested in dividend blue-chips like Smuckers and CVS, while Anne Scheiber invested her money in dividend growth stocks like Procter & Gamble as well as Johnson & Johnson.

So what if I told you that you could, just like Reed and Scheiber, harness the power of blue-chip dividend stocks to achieve your dreams?

Think I’m crazy?

Today, I’ll walk you through the three-fold strategy of one of the most famous dividend blue-chip investors of our time and give you a free pick to start building up your portfolio now.

The Most Famous Dividend Blue-Chip Investor

The investor I am referring to is not just a millionaire, but one of our most well-known billionaires, Warren Buffett.

And Warren Buffett built his fortune by investing dividend blue-chips just like Reed and Scheiber.

Don’t just take my word for it. 

In 2013 AQR did a study called “Buffett’s Alpha.” Guess what they found? Just three things explained almost all of Buffett’s incredible 20.5% investing returns over the last half-century.

  1. Buffett bought high-quality, mostly dividend stocks

  2. He bought them for the long-term, mostly when they were undervalued

  3. He used 60% leverage through insurance float

Buffett’s 60% leverage via his insurance companies is NOT something regular people can recreate.

But buying and holding the world’s best dividend blue-chips most certainly is.

What were Buffett’s unlevered returns?

His annual returns based purely on stock-picking prowess were 12.8%, just like dividend blue-chips delivered for the last 50 years.

In other words, if you buy the world’s best dividend blue-chips, you can achieve Buffett’s unlevered returns.

And the chart below shows you the size of the portfolio you can accumulate over time by owning dividend blue-chips.

(Source: Dave Ramsey Investment Calculator, Ned Davis Research)

You might think that dividend blue-chips can’t help you retire rich. But actually, as long as you either have enough time, savings, or ideally, both, they can change your life.

Boost Your Portfolio

So today, I’ll give you one great example of a dividend blue-chip I recommend you buy now. This stock can potentially deliver better than Buffett-like 13.5% annual returns.

Altria (MO) is one of the best-performing stocks in history, compounding investor wealth at 19% annually for almost 100 years.

  • $1 invested 90 years ago is worth $137,000, adjusted for inflation today

Buffett achieved 20% returns with 60% leverage, and Altria delivered returns almost as good with no leverage over the years.

Today, Altria is about 33% historically undervalued and isn’t expected to grow at its historical rate of 8% to 9%.

Why? Because it is one of the world’s largest producers of tobacco and cigarettes. And Altria is rebranding itself.

You can now find on their website this statement: “Altria’s companies are leading the way in moving adult smokers away from cigarettes.”

This transition has caused a shift, which is why Altria is currently trading at a discount. But make no mistake, I have full confidence that it will be flying high again in no time. So now is the time to buy.

Management’s plans for a smoke-free future creates the opportunity for 5% to 6% long-term growth. Combined with a very safe 8.0% yield, that’s 13% to 14% long-term return potential.

A level of return that will likely beat Buffett’s unlevered returns in the future, other aristocrats, and even dividend blue-chips overall. It’s likely to be about 2% better annual returns than the Nasdaq.

And Altria is not even the best high-yield blue-chip you can buy today.

But it is the best one I am willing to give away for free, and an example of how one of the world’s best blue-chips can help you beat Buffett going forward.

For those that want to invest in my Fortress Portfolio. I’ve put together a list of 17 dividend blue-chip growth stocks to buy and hold forever. The investment strategy behind this portfolio took me from $50,000 in debt to the millionaire I am today in less than 5 years. If you’re interested in learning more, click here.

After the ups and downs of my own life, my goal is to prevent you from making the same mistakes I made so that you can achieve financial freedom and pursue your dreams.

We only have one life. I want all of us to be able to live it well.

Safe Investing,

Adam Galas
Analyst, Intelligent Income Daily