Our primary purpose is to assist investors in growing their capital and income base from which to generate cash for their current and future needs, explains Kelley Wright, editor of Investment Quality Trends.

To that end, we believe that shares of high-quality stocks purchased at a historically repetitive area of low-price/high-yield offer the greater potential for downside protection and upside appreciation.

The Timely Ten, therefore, 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 ten 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 Ten represents our current top ten recommendations.

Our latest Timely Ten elections are:

  • Chevron Corp. (CVX)—yielding 3.3%
  • Apache Corp. (APA)—yielding 1.0%
  • CVS Caremark (CVS)—yielding 1.5%
  • Abbott Labs (ABT)—yielding 2.2%
  • Occidental Petroleum (OXY)—yielding 2.8%
  • Coca-Cola (KO)—yielding 2.9%
  • ExxonMobil (XOM)—yielding 2.7%
  • AT&T (T)—yielding 5.2%
  • Lowe's Cos. (LOW)—yielding 1.9%
  • TJX Companies (TJX)—yielding 1.3%

The Timely Ten is comprised of stocks from the Undervalued category that generally have an S&P Dividend & Earnings Quality ranking of A- or better, a growth designation for exemplary long-term dividend growth, and a P/E ratio of 15 or less.

They also show a payout ratio of 50% or less, long-term debt-to-equity of 50% or less, and technical characteristics on the daily and weekly charts that suggest the potential for imminent capital appreciation.

Subscribe to Investment Quality Trends here…

More from MoneyShow.com:

Dividends Every Month

A Trio for High Yield Wealth

Tortoise Trio: Slow and Steady