Our goal is to help investors grow their capital and income base from which to generate cash for their current and future needs. 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 greatest potential for downside protection and upside appreciation.
Our "Timely 10" below is not just another best of, right now
list. Rather, it is our reasoned expectation, based on our methodology and experience, that these 10 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, these stocks represents our top 10 current recommendations.
The list 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% or less, long-term debt-to-equity of 50% or less (75% 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 selections:
Chevron Corp. (NYSE:CVX)—yielding 3.3%
CVS Caremark (NYSE:CVS)—yielding 1.6%
Coca-Cola (NYSE:KO)—yielding 2.9%
Baxter International (NYSE:BAX)—yielding 3.0%
Walgreen (NYSE:WAG)—yielding 2.3%
McDonald's Corp. (NYSE:MCD)—yielding 3.3%
PepsiCo (NYSE:PEP)—yielding 2.8%
Exxon Mobil (NYSE:XOM)—yielding 2.9%
Occidental Petroleum (NYSE:OXY)—yielding 2.7%
Editor's Note: This IQ Trends article by Kelley Wright was originally syndicated by MoneyShow.
Below, find some more great investing and trading content from MoneyShow:
Spirited Buy Among Airlines
Wal-Mart Stores (NYSE:WMT)—yielding 2.5%
DaVita: Low-Beta Buffett Buy
6 Billion Reasons Vodafone Connects
No positions in stocks mentioned.
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