Monday, September 15, 2014

5 Best Blue Chip Stocks For 2014

There are few technology analysts who would excuse Intel's (NASDAQ: INTC  ) failure to both foresee and participate in the mobile computing revolution. But does this egregious oversight, capped off by the CEO's pending retirement, mean that Intel stock is a lost cause? Hardly. In my opinion, in fact, it's one of the biggest blue chip bargains today.

Take Intel's dividend yield. At 4.3%, it blows other blue chip stocks out of the water. According to The Wall Street Journal, the average yield on the S&P 500�is 2.12%. And the same figure for the Dow Jones Industrial Average is 2.43%.

INTC Dividend data by YCharts.

To sweeten the pot, Intel consistently increases its quarterly distribution. Five years ago, as you can see in the chart above, Intel stock paid out $0.14 per share each quarter. This year it's paying $0.225. That equates to a 60% increase.

Top Consumer Service Stocks To Invest In 2015: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:
  • [By Rick Munarriz]

    If imitation is the sincerest form of flattery, Comcast's (NASDAQ: CMCSA  ) (NASDAQ: CMCSK  ) Universal Orlando theme park resort in Florida is lavishing Apple (NASDAQ: AAPL  ) with heaps of praise.�

  • [By Evan Niu, CFA]

    Even though Apple's (NASDAQ: AAPL  ) new capital return program that entails giving back $100 billion to shareholders should hopefully set a price floor for shares, the iPhone maker is also running into a ceiling at the same time: There's simply not much growth left in the high-end smartphone market.

  • [By Chris Neiger]

    Take, for example, Nokia's (NYSE: NOK  ) move to the Windows Phone OS. Nokia wasn't using Android for its platform before it moved to Windows Phone, but it is trying to sell phones that aren't running on Apple's (NASDAQ: AAPL  ) iOS or Android -- which have a combined smartphone global market share of 91% right now.

  • [By Daniel Sparks]

    China was once one of Apple's (NASDAQ: AAPL  ) red-hot growth markets. Now sales in Apple's Greater China area came in only 7.5% higher than the year-ago quarter. Has growth slowed indefinitely, or is this only a temporary setback?

5 Best Blue Chip Stocks For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:
  • [By Anders Bylund]

    Let's not go there
    In happier and far less controversial news, IBM (NYSE: IBM  ) backed down from the worst idea Big Blue ever had.

  • [By Lawrence Meyers]

    It had adjusted EBITDA of only $37 million. Operation were about break-even. Yet the company is valued at ��$19 billion. How? Nobody has been able to explain to me how Twitter is going to generate much profit at all. How can the market reward this company with that valuation? Value investors may get tempted by the 50% selloff thus far, but I don�� see how this company is even worth $15 per share at this point.

    IBM (IBM)

    I�� sorry to say it, but IBM (IBM) is not a value stock. The stock trades about 12% from its 52-week high. Yet it isn�� growing at all. FY11 net income was $15.86 billion, FY12 net came in at $16.6 billion, and FY13 came in at $16.48 billion. While analysts project 8% long-term annualized earnings growth, that doesn�� take into account the share buybacks the company engages in.

5 Best Blue Chip Stocks For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By Rick Munarriz]

    Naturally, this leads one to wonder how Starbucks (NASDAQ: SBUX  ) and McDonald's (NYSE: MCD  ) -- two retail giants that have moved from traditional coffee to offer icy coffee beverages that have been sweetened -- as potential targets in the attack on caffeine.�

  • [By The Science of Hitting]

    2) The Street�� Misguided Guidance ��As Howard notes in the first paragraph, the company sacrificed on the experience in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores in just 10 years (that�� an average of more than three new stores each and every day for a decade). A lot of this was in hopes of satisfying the street, which led to decisions focused on short-term growth rather than long-term sustainability. Unfortunately, the commoditization of the cookie cutter model destroys brand equity, and leads to price competition; considering that a cup of black coffee at Starbuck�� is more than twice the cost of a black coffee at McDonald�� (MCD), it appears that management made the right decision in rethinking the brand experience and moving back towards the core: differentiation.

5 Best Blue Chip Stocks For 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:
  • [By Shauna O'Brien]

    On Wednesday, Philip Morris International Inc. (PM) announced that its board has approved a 10.6% increase to its quarterly dividend.

    PM has increased its dividend from 85 cents to 94 cents per share, or $3.76 annually.

    The dividend will be paid on October 11 to shareholders of record on September 26. The stock will go ex-dividend on September 24.

    Philip Morris shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.

  • [By Robert Stephens]

    Philip Morris
    The 4.4% yield offered by Philip Morris� (NYSE: PM  ) �is well-covered at 1.5x, which seems to be very sensible and shows that the company is not over-extending itself when it comes to payments to shareholders. This makes the income from the stock even more sustainable and highlights its potential as a sound defensive play.

  • [By David Sterman]

     

    4. Phillip Morris (NYSE: PM) After shares of this tobacco giant pulled back from the mid-$90s in the spring to $89 by early August, director Graham Mackay thought he spotted value, plunking down more than $1.1 million of his money to buy shares. He should have waited, as shares have since fallen below $84.

     

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