Timely 10: Blue chip values
These stocks meet the criteria for high quality blue chip dividend buys.
Our goal is to help investors grow their capital and income base from which to generate cash for their current and future needs, advises Kelley Wright, blue chip value investor and editor of IQ Trends.
To that end we believe that shares of high-quality stocks purchased at an historically repetitive area of low-price to high-yield offers the greater potential for downside protection and upside appreciation.
The Timely 10 is not just another "best of, right now" list. Rather, it is our reasoned expectation based on our methodology and experience, that these ten currently Undervalued stocks offer the greatest real total-return potential over the next five years.
Do we believe that all 10 will appreciate simultaneously or immediately? Of course not.
Our four-plus decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for both growth of capital and income.
Whether you are building a portfolio from scratch, are partially invested and seeking new positions, or are fully invested and in need of some affirmation and hand holding, The Timely 10 represents our top ten current recommendations.
The Timely 10 is comprised of stocks that generally have an S&P Dividend & Earnings Quality ranking of A- or better, a designation for exemplary long-term dividend growth, and a P/E ratio of 15 or less.
They also have a payout ratio of 50 percent or less, long-term debt-to-equity of 50 percent or less (75 percent for Utilities), and technical characteristics on their daily and weekly charts that suggest the potential for imminent capital appreciation.
Based on this criteria, here are our current Timely 10 selections:
Chevron Corp. (CVX) -- yielding 3.3 percent
CVS Caremark (CVS) -- yielding 1.6 percent
Coca-Cola (KO) -- yielding 2.9 percent
Baxter International (BAX) -- yielding 3.0 percent
Walgreen (WAG) -- yielding 2.3 percent
McDonalds Corp. (MCD) -- yielding 3.3 percent
PepsiCo (PEP) -- yielding 2.8 percent
ExxonMobil (XOM) -- yielding 2.9 percent
Occidental Petroleum (OXY) -- yielding 2.7 percent
Wal-Mart Stores (WMT) -- yielding 2.5 percent
More from MoneyShow.com
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
These companies won't soar like other plays in the sector, but they make for great income sources.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.