Best Blue Chip Companies To Invest In 2014

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) started off earnings season on a strong note, gaining 89 points, or 0.6%, in relatively steady trading. On a day with no major economic reports, the good feelings from last week's employment report and optimism about earnings season seemed to carry the blue chips higher. Alcoa (NYSE: AA  ) kicked off the quarterly announcements after hours today, as the aluminum maker slightly beat expectations with an adjusted earnings per share of $0.07 versus the consensus at $0.06, and reiterated its forecast for aluminum demand to increase 7% this year. Revenue fell 2% to $5.85 billion on lower metal prices, but that also beat estimates of $5.83 billion. After a gain of 1.4% during the trading session, shares fell back 0.25% following the report.

Tech stocks were behind the curve today, as the Nasdaq gained just 0.16%, mainly because Intel (NASDAQ: INTC  ) got downgrades from Citigroup and Evercore Partners, slashing 3.6% off of the chipmaker's share price. Citi analyst Glen Yeung said there was a ceiling in Intel's share price, given weakening PC sales and repeated downward earnings revisions. Evercore, meanwhile, said unit sales of Intel chips could be down as much as 10% this year as PC sales continue to fall further than expected.

Top High Dividend Companies To Watch For 2015: 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 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.

   

• [By abirk]

  Philip Morris International (PM) is reaching new heights in 2013. With its products being sold in 180 countries it is the proud owner of about 15 cigarette brands- Marlboro, Merit, Parliament, Virginia Slims, L&M, and Chesterfield being some of them. FY2013 looks bright for this tobacco giant. Reasons Why 2013 Is Looking Bright

• [By Ben Levisohn]

  Shares of Phillip Morris (PM) have been performing about as well as a soggy cigarette–but Morgan Stanley still hopes they will catch fire.

  Agence France-Presse/Getty Images

  How bad has performance of Phillip Morris been? Its shares have dropped 1.9% during the past 12 months, while American-focused Altria Group (MO) has gained 15%. British American Tobacco (BTI) has gained 3%, Reynolds American (RAI) has advanced 14%, and Lorillard (LO) has jumped 26%.

  And now Morgan Stanley’s David Adelman and team have cut their earnings-per-share forecast for Phillip Morris by 11 cents thanks to the strong dollar, after cutting it by 41 cents six weeks ago. Adelman explains why:

  While PM�� significant EM exposure has been an important driver of its 8%+ constant-currency 2008-2013 EBIT CAGR, recent weakness in a number of important EM currencies (e.g., Argentina, Turkey and Indonesia) will undoubtedly weigh on 2014 reported results. Further, it remains somewhat unclear the extent to which added Yen weakness will impact results, as PM�� F/X guidance already suggests that it was somewhat hedged on USD/Yen. Finally, with ~60% of its operating expenses denominated in ��ard dollar��currencies (USD, EUR and CHF), we have also incorporated a significant estimated transactional F/X impact (+40% of our $0.52/share est.).

  Still, Adelman kept Phillip Morris rated Overweight. He explains why:

  Remain OW, as stock should benefit from recent weakness and achievable 2014 targets: After underperforming US Tobacco and Staples by 18% and 24%, respectively, in 2013, and with expectations already lowered to a conservative level of 6-8% currency-neutral underlying EPS growth in 2014, we believe current valuation of ~14.5x 2015e P/E and <10x EV/EBITDA remains attractive. We continue to view local-currency earnings risk as to the upside, particularly as no new issues have appeared to emerge entering 2014 (such as unforeseen outsized excise

Best Blue Chip Companies To Invest In 2014: 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 ChuckJones]

  As most everyone knows, Apple (AAPL) increased its dividend and stock buyback program on April 23. The dividend went from $2.65 to $3.05 per quarter or $12.20 per year. The company increased its share buyback program from $10 billion to $60 billion and plans for it to be completed by December 2015. By December 2015 the company will have returned $100 billion to shareholders which was about 26% of its market cap at the time of the announcement.

Best Blue Chip Companies To Invest In 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Bryan Perry]

  Don�� let that scare you off, though. MCD is down a meager 2.7% in 2014, and even less since the last time it was featured on our list. On a more positive note, the $3.24 annual dividend makes for a very nice 3.4% yield. With the stock now trading just 1.5% above its 52-week low, this should be seen as an attractive opportunity to own one of the world�� most recognizable brands and dividend stocks.

  Dow Dividend Stocks #6: Chevron (CVX)

  Dividend Yield:�3.4%
  YTD Performance:�-6.9%
  52-Week Return: +0.9%

• [By Matt Thalman]

  ExxonMobil (NYSE: XOM  ) reports on Thursday, while fellow energy stock Chevron (NYSE: CVX  ) pulls in on Friday. For Exxon, the Street wants to see EPS of $1.90 on revenue of $105.54 billion. A year ago, Exxon posted EPS of $1.80 and sales of $127.36 billion. Earnings are thus set to rise, and that's what really matters. The EPS estimate of $1.90 is an average of 21 analysts' opinions, with the high end at $2.05 per share and the low end coming in at $1.63. The expected 17.1% year-over-year revenue drop for Q2 isn't a great sign, and it could pose a big problem if Exxon misses expectations. �

Best Blue Chip Companies To Invest In 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Procter & Gamble have gained 0.1% to $81.44 at 2:06 p.m. today, while Unilever (UL) has risen 0.6% to $43.96, Colgate-Palmolive (CL) is little changed at $65.65 and Kimberly-Clark (KMB) has advanced 0.5% to $111.31.

Best Blue Chip Companies To Invest In 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By WWW.DAILYFINANCE.COM]

  Getty Images Recent events like the data breach that affected Target (TGT) customers across the nation have made consumers think twice before using credit and debit cards. In particular, prepaid cards -- onto which customers load a certain amount of money, and which can be used anywhere that accepts debit cards -- have created a great deal of confusion, as many people aren't clear about whether they offer the same fraud protections as credit cards or debit cards. Moreover, with wide variations in fees, it can be hard to figure out which prepaid card is best for you. To make it easier for consumers to choose among prepaid cards, Visa (V) came out on June 3 with a new set of standards. Although issuers won't be required to follow those standards, those cards that meet the requirements will receive Visa's designation, which it hopes will spur customers to demand those positive characteristics. But do Visa's moves go far enough? Let's look. What Visa Did Some of the most important standards are for fees. Visa wants to see banks set flat monthly fees that include everything that cardholders would generally want to do with a prepaid card. Specifically, Visa wants prepaid card issuers not to charge separate fees for declined transactions, in-network ATM transactions, PIN or signature purchase transactions, getting cash back at the point of sale or general customer service. In addition, Visa wants cards not to charge overdraft fees or provide overdraft coverage, which makes sense given that the entire point of the prepaid card is to limit users to the amount loaded on the card. Moreover, Visa wants prepaid card issuers to communicate their fee structures clearly, using some of the same methods that they are now required to use with credit cards, such as fee boxes and simple disclosures. In addition, a quick-use guide for consumers will help them minimize the costs of using particular cards. Protecting the Consumer Visa is including several important provisions fo

• [By Reuters]

  Steven Senne/AP BOSTON -- Companies that help Target process payments could face millions of dollars in fines and costs resulting from the unprecedented data breach that struck the retailer during the holiday shopping season. Investigators are still sorting through just how thieves compromised about 40 million payment cards and the information of about 70 million Target (TGT) customers. But people who have reviewed past data breaches believe Target's partners could face consumer lawsuits and fines that payment networks such as Visa (V) and MasterCard (MA) often levy after cybersecurity incidents. Target's partners "have deep pockets and are intimately involved in certain aspects of how Target gets paid," said Jamie Pole, a cybersecurity consultant in Asheboro, N.C., who works for government agencies and the financial industry. Fines and settlement costs could reach into the millions of dollars for individual companies, he said, though much will depend on how the ultimate liability for the breach is determined. Boston attorney Cynthia Larose of Mintz Levin said Target would likely seek to add its partners as defendants to lawsuits already filed over the breach. "These class-action lawsuits start to bring everyone in at some point," she said. After its systems were penetrated by hackers in the mid-2000s, retailer TJX Cos. (TJX) agreed to pay up to $40.9 million to cover fraud costs in a settlement with Visa. Visa also issued penalties of $880,000 against Fifth Third Bancorp (FITB) of Ohio, which processed transactions for TJX. Asked about the business relationships and possible costs, Target spokeswoman Molly Snyder declined to comment, citing the ongoing investigation and pending suits. A Visa spokeswoman declined to comment. A MasterCard spokesman said the company couldn't discuss an ongoing investigation. Handling Target Transactions Several companies are involved in any purchase from a store such as Target. A bank issues the consumer's payment card

Best Blue Chip Companies To Invest In 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 Andr茅s Cardenal]

  The war for breakfast is getting hotter than ever, with big fast-food companies such as Yum! Brands (NYSE: YUM  ) , McDonald's (NYSE: MCD  ) , and Burger King (NYSE: BKW  ) intensifying their competitive pressure in that lucrative niche. On the other hand, at the higher end of the pricing spectrum, Starbucks (NASDAQ: SBUX  ) could be a clear winner in that competition thanks to its differentiated quality and successful menu innovations.

• [By Rick Munarriz]

  The allure may be obvious. Average ticket prices could head higher as customers trade up from sodas and beers. However, McDonald's (NYSE: MCD  ) also thought that it could boost sales and woo new customers by adding premium beverages. It hasn't exactly worked out well lately. Comps turned negative in October for the first time in a decade, and customer complaints are growing.�

• [By Michael Lewis]

  Fast-food chains are making a formidable attempt at adapting to shifting consumer tastes. For decades, a solid cheeseburger at a low price had been enough to drive the rapid expansion of the businesses throughout the United States and overseas, but now it appears that fast eaters want more. With new products such as a Pretzel Bacon Cheeseburger, and health-oriented flatbread sandwiches, The Wendy's Company (NASDAQ: WEN  ) is proving to be a formidable competitor to the long-reigning number one chain, McDonald's (NYSE: MCD  ) . The stock is feeling full as well, up more than 35%�in 12 months. The question now is, can the stock still move higher as management continues its renovation, or has this opportunity passed?

• [By Susan J. Aluise]

  My biggest worry about Chipotle stock right now is that its valuation is too hot to handle. This is a stock that is trading at more than 34 times forward earnings; compare that to restaurant rivals like McDonalds (MCD) at 15.5 and Taco Bell and KFC parent Yum Brands (YUM) at 18.5. Even fast-casual peer Panera has a comparably cheap forward P/E of 20.4.