By Kelley Wright, IQ Trends

Our current Timely Ten buy list is our reasoned expectation -- based on our methods and experience -- of which stocks we believe will perform best over the next five years.

In our view, high-quality stocks purchased at historically low price to high yield offer the best potential for downside protection and upside appreciation.

They consist of undervalued stocks that generally have an S&P dividend and earnings quality rating of A- or better and have a history of exemplary long-term dividend growth.

These stocks also have a price-to-earnings ratio of 15 or less, a payout ratio of 50% or less (75% for utilities), debt of 50% or less (75% for utilities), and technical characteristics that suggest the potential for imminent capital appreciation.

Do we believe that all 10 will go up simultaneously or immediately? Of course not.

Our four-plus decades of research and experience, however, leads us to believe that these stocks, purchased at historically undervalued levels, are well positioned for both growth of capital and income.

Our latest Timely Ten selections, along with their recent dividend yields:

Chevron (CVX) -- yielding 3.2%
Eaton Corp. (ETN) -- yielding 3.2%
Coca-Cola (KO) -- yielding 2.8%
Occidental Petroleum (OXY) -- yielding 2.4%
Union Pacific (UNP) -- yielding 2.2%
ConocoPhillips (COP) -- yielding  3.5%
United Technologies (UTX) -- yielding 2.4%
Johnson & Johnson (JNJ) -- yielding 3.6%
CVS Caremark (CVS) -- yielding 1.5%
Harris Corp. (HRS) -- yielding 3.0%

Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or fully invested and in need of some affirmation and hand holding, these stocks represent our top current buy recommendations.

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