5 Best Blue Chip Stocks To Watch For 2014

The Dow Jones Industrial Average has had quite a year, with the blue-chip index adding about 14%.

That�� not quite as much as the S&P 500, of course, but keep in mind that the Dow also just gave itself a facelift by booting also-ran aluminum stock Alcoa (AA), fallen tech giant Hewlett-Packard (HPQ) and troubled financial stock Bank of America (BAC) and replacing them with some fresh faces.

Those watching the Dow might think that those laggards kicked out of the index are the worst blue chips Wall Street has to offer right now. However, a closer look at the Dow reveals five rather ugly components that still are holding back the index — and that investors should avoid if they want to profit in 2014.

The dogs of the Dow you should sell right now include Caterpillar (CAT), Walmart (WMT), IBM (IBM), Coca-Cola (KO) and Exxon Mobil (XOM).

5 Best Blue Chip Stocks To Watch For 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 Jason Moser]

  MasterCard's share of electronic payments
  This represents the share of the 15% of transactions that are already in electronic form. On the one hand, according to the Nilson Report competitor Visa (NYSE: V  ) holds about 63% share versus MasterCard's 31%. But when we consider that MasterCard's network has the capacity to handle more than 160 million transactions per hour, and only runs at about 80% capacity per day, there is obviously room to grow, and that is what management is doing. CFO Martina Hund-Mejean put it bluntly: "Look, we are looking at ourselves as a growth company, and obviously all of our investments that we are doing are really pointed to make sure that the top line continues to grow."�

• [By Jonas Elmerraji]

  You don't have to be an expert technical analyst to figure out what's going on in shares of Visa (V) right now. The preeminent payment network is currently bouncing higher in a well-defined uptrend that's propelled shares since the start of 2013. This week, with shares testing that trendline support level for an eighth time, we're coming up on an ideal time to be a buyer.

  But don't buy shares of Visa anticipating a move higher. Instead, wait for the bounce. Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). And by actually waiting for the bounce to happen first, you're ensuring the Visa can actually still catch a bid along that line.

  Remember, trendlines do eventually fail, and when this one does, you don't want to be holding the bag. We could very well get our bounce today in Visa. If you decide to buy, keep a tight stop in place.

• [By Diane Alter]

  Athletic gear maker Nike Inc. (NYSE: NKE) steps into the place of Alcoa, a Dow component for 54 years. Payments company Visa Inc. (NYSE: V) will unseat HP, which joined the blue-chip benchmark in 1997. And Goldman Sachs Group Inc. (NYSE: GS) replaces BofA, which joined the index five years ago.

• [By Tim Beyers]

  Getty Images There are some people who spend $5,000 each year going out to lunch. And then there are some who spend nothing. But according to a new Visa (V) survey, on average, Americans spend $936 a year -- or $10 per outing -- on restaurant-made lunches. That kind of money could easily help fund a winter trip to the beach, but it's going to stale chips, soda, and six-inch subs instead. Or, if you're among the 1 percent who spend more than $50 a lunch -- nearly $5,000 a year -- you'd have that beach trip completely covered. Here's a closer look at how the rest of us spend our lunch breaks: Men spend more. They spend 44 percent more, specifically: $21 weekly compared to $15 on average for women. So do the poor. Those who makes $25,000 or less spent more per meal, $11.70, than any other income bracket. Chitown = cheaptown. Midwesterners spent the least on eating out, just $8.90 per meal. Northeasterners ate out the least often -- just 1.5 times per week -- while Southerners spent an average of $10 each time on two weekly visits to the lunch counter. Resisting the temptation to get takeout for lunch can really pay off. "Simple choices have a large impact on your wallet," says Nat Sillin, Visa's head of U.S. Financial Education."Clipping a coupon, choosing a less expensive item, or brown-bagging it can save you hundreds over the course of a year." But Sillin isn't condemning eating lunch out. Rather, it's about being aware of how much you're spending and whether you can afford to spend that amount. "Going into debt for a tuna sandwich isn't worth it." Fair point. But what if you don't know where to start? Here are four tips for reducing your lunch tab without going hungry: 1. Bring leftovers. This should be obvious, but for many it isn't. Cook enough over the weekend for multiple weekday meals and then store the remainder in portable containers you can bring to work. Reheat, serve, and bask in the savings as you watch YouTube at your desk. 2. Buy frozen.

5 Best Blue Chip Stocks To Watch For 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 Dan Caplinger]

  Given its size, Exxon has to work hard just to stand still on the production front. Because existing wells naturally see declines in output over their productive lifetimes, Exxon has to look for new sources constantly in order to replace aging wells. The company is even less nimble than fellow Big Oil players Chevron (NYSE: CVX  ) and ConocoPhillips, both of which expect much greater production growth than Exxon's targeted 2% to 3% growth. Chevron now expects 6% growth per year through 2017, while Conoco is seeking 3% to 5% annual growth over that period.

• [By John Divine]

  Yes, oil prices fell 7.5% across the globe, and yes, Chevron's (NYSE: CVX  ) earnings dropped 4.5% in the first quarter, yet shares still added 1.3% today after the energy giant reported. While oil production slipped, increased traction in the natural gas business showed some promise, as natural gas sales rose 3.2%.�

• [By Matt Thalman]

  A few stocks are being hurt by lower commodity prices. Both of the major oil and gas components of the Dow are also falling today. Chevron (NYSE: CVX  ) is down 2.4%, while ExxonMobil (NYSE: XOM  ) has lost 2.2%. The price of a barrel of light crude oil has fallen 3.6% today, and unleaded gasoline per gallon is down 1.67%. The feared slowdown in China is likely the reason the price of oil is dropping. However, as we have seen in the past, the price of oil falls only briefly before moving higher again. Investors in Chevron or Exxon should ride out this temporary downturn and wait for higher prices at the pump.

• [By Matt Thalman]

  As a whole, the energy sector slid lower today, while Chevron (NYSE: CVX  ) dropped 1.09% and ExxonMobil (NYSE: XOM  ) declined 0.8%. The decline came as crude prices hardly fell, but natural gas moved lower by 2.55%. Last week's U.S. crude oil inventory report has caused traders some concern as inventories fell; the price of oil also moved lower, which doesn't follow standard supply and demand theories. Furthermore, both Chevron and Exxon are scheduled to report earnings later in the week, so that could be playing on investors' minds as the price of oil highly affects the company's earnings per share. As earnings are released, investors should be watching each company's inventories and what each expects on the production side in the coming months as that will likely also affect the price of oil and earnings down the road. �

Top 10 Value Stocks To Invest In Right Now: 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 Tim Melvin]

  I will leave it to everyone else to follow the big hedge fund stars to see who bought or sold the most shares of Apple (AAPL) and Google (GOOG) in the third quarter. I prefer to follow the value types who are not in the day-to-day headlines but have done an outstanding job of making money over long periods of time.

• [By Evan Niu, CFA]

  Everyone knows Steve Jobs. The Apple (NASDAQ: AAPL  ) co-founder easily reached celebrity status by the time he died in 2011, uncommon for the CEO of a major tech company, particularly to the degree that the public exalted him. Jobs undeniably cemented his visionary status with a series of breakthrough products.

• [By Wallace Witkowski]

  Plus, more than 120 companies on the S&P 500 report next week with notable releases from Apple Inc. (AAPL) and Biogen Idec Inc. (BIIB) �on Monday; Gilead Sciences Inc. (GILD) �and Allergan Inc. (AGN) �on Tuesday; Starbucks Corp. (SBUX) �, General Motors Co. (GM) , and Comcast Corp. (CMCSA) �on Wednesday; along with MasterCard Inc. (MA) �and ConocoPhillips (COP) �on Thursday.

• [By Chris Neiger]

  Don't worry, The Motley Fool hasn't been tracking your downloads -- but the research firm App Annie has. Their latest report�shines a light on consumers' mobile app preferences and how those apps translate into revenue for companies like Apple (NASDAQ: AAPL  ) .�

5 Best Blue Chip Stocks To Watch 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 Jim Royal]

  Let's take McDonald's (NYSE: MCD  ) as an example. In the four quarters ending in December, the restaurateur generated $6.97 billion in operating cash flow. It invested about $3.05 billion in property, plant, and equipment. To calculate free cash flow, subtract McDonald's investment from its operating cash flow. That leaves us with $3.92 billion in free cash flow, which the company can save for future expenditures or distribute to shareholders.

• [By Geoff Gannon]

  1. World Acceptance (WRLD)
  2. Express Scripts (ESRX)
  3. Walgreen (WAG)
  4. Humana (HUM)
  5. McDonald's (MCD)

  Those are the kinds of companies a younger ��and poorer ��Warren Buffett might buy. Actually, a few of those companies are big enough for Warren Buffett to buy today.

• [By WWW.DAILYFINANCE.COM]

  Paul Sakuma/AP NEW YORK -- What has two all-beef patties, special sauce, lettuce, cheese, pickles and onions on a sesame bun? Burger King's latest sandwich. The Miami-based chain says it's bringing back its "Big King" sandwich, which looks a lot like the popular Big Mac made by its bigger rival McDonald's. Burger King says it's an addition to the permanent menu rolling out this week. Burger King says it previously offered the Big King as a limited-time offer. But back then, it didn't have the middle bun -- a Big Mac hallmark -- like it does now. It's just the latest move by Burger King that seems to pay more than a little homage to the Golden Arches. Last spring, Burger King also unveiled a revamped menu that looked a lot like the food McDonald's (MCD) had added in recent years, such as fruit shakes, chicken snack wraps and specialty coffee drinks. Since then, Burger King has also rolled out a rib sandwich to compete with the popular McRib, as well as chicken nuggets (Burger King is better known for its chicken tenders). As the New York Post wrote at the time, "They look like McNuggets. They're as nutritious as McNuggets. Just don't call them McNuggets." What does McDonald's think of all this? "We're focused on our business and our customers," spokeswoman Lisa McComb said in an email. Scott Hume, editor of BurgerBusiness.com, notes that imitation is common in the fast-food industry. "McDonald's clones make sense if they're popular in the marketplace," Hume said. He noted that Burger King has also rolled out more differentiated products, such as a pulled pork sandwich. AP

• [By Jeremy Bowman]

  McDonald's (NYSE: MCD  ) was another strong gainer, moving up 1.6% after bringing back Steve Easterbrook as Chief Global Brand Officer. Easterbrook had formerly overseen McDonald's Europe, the Golden Arches' biggest region, with 7,000 restaurants in 39 countries. The fast-food chain also tripled the pay for its former and current CEO, and was also receiving some negative publicity after an ad in Massachusetts came out that seemed to associate eating Big Macs with mental illness and depression. McDonald's immediately pulled the ad. �

5 Best Blue Chip Stocks To Watch For 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 Dan Caplinger]

  Moreover, it's starting to appear that Clorox has weathered a tough part of its business cycle. Throughout the industry, Procter & Gamble (NYSE: PG  ) , Colgate-Palmolive (NYSE: CL  ) , and Clorox all had to deal with rising costs for the inputs they needed to make their respective products. The companies responded by implementing price-cutting measures and passing on part of their higher costs to their customers. For its part, Clorox was able to expand its gross margins by a full percentage point, with a worse-than-normal flu season contributing to sales. Now that input-cost inflation is easing, P&G and Clorox expect to see better profitability, with growth starting to approach the faster rates that Colgate has enjoyed.

• [By Dan Caplinger]

  Lately, Johnson & Johnson has presented two different faces to investors. On one hand, the company has faced the challenge of dealing with a weak consumer-products business, as multiple recalls and close regulatory oversight of its production facilities have exacerbated J&J's problems. With its more focused consumer-goods business, Colgate-Palmolive (NYSE: CL  ) has worked harder at taking advantage of international growth opportunities than many of its rivals, and Colgate's strong overseas sales, in comparison to J&J's international weakness, show the effectiveness of that strategy. In particular, Asia has been a focus point for Colgate, with revenue from the region having risen 9% year over year compared with less than 3% growth overall. Moreover, Latin America represents Colgate's biggest region for sales, with more than half again the revenue its U.S. segment produces.

• [By Eric Volkman]

  It's one of the steadiest dividend payers on the market, and it's continuing to fly level. Colgate-Palmolive (NYSE: CL  ) has declared a fresh quarterly common stock dividend, which is to be $0.34 per share, paid on August 15 to shareholders of record as of July 23. That amount matches the firm's previous distribution; this was paid in May. Prior to that, Colgate-Palmolive handed out $0.31 per share.

• [By Dan Caplinger]

  One concern, though, is how the company handled news of Venezuela's currency devaluation. Clorox (NYSE: CLX  ) and Colgate-Palmolive (NYSE: CL  ) also felt the pinch, with Clorox taking about a $0.05 to $0.10 per-share earnings hit and Colgate losing about $0.50 per share. But they also addressed the potential devaluation more proactively than P&G did. Clorox actually�anticipated�the devaluation in its February earnings report, projecting the potential hit if a devaluation took place. Colgate didn't provide specific guidance in advance but clearly saw it as an issue, delivering on a promise to give prompt guidance revisions after the devaluation occurred.