Three Top Dow Stocks for Investors

Looking for the bluest of blue chips? PowerRatings make it easy to see which stocks in the Dow Industrials represent the best current values for investors.

As I wrote yesterday, the best stocks do not always come from the highest-rated industries. While it is an excellent strategy to look for what I've called "good houses in good neighborhoods", PowerRatings allow us to find strong stocks wherever they may be found -- including in sectors and industries that, as a whole, are not expected to outperform in the coming year.

If you are looking for top stocks -- and who isn't -- stocks that are expected to be higher one year from now -- then you can hardly go wrong with 10-rated stocks. 10-rated stocks, based on our research looking at thousands and thousands of simulated trades going back to 1995, have been higher one year later more than 80% of the time.

Additionally, 10-rated stocks, since 1995, have tended to return more than 20% in a year's time.

Compare this to the average stock, which has been higher one year later less than 68% of the time. The average stock has also gained between 12-13% in a year -- significantly less than 10-rated stocks.

All three of our top-rated Dow Industrials stocks for today are members of this elite, 10-rated class of equities, making them ideal candidates for investment.

Procter & Gamble (PG@PG | Quote | Chart | News | PowerRating) is a major manufacturer of consumer goods products. The company's widely-known products range from Charmin bathroom tissue and Bounty paper towels to Crest toothpaste and Tide laundry detergent. With nearly 300 brands, Procter & Gamble recently reported earnings per share growth of 16%, on sales growth of 8%. Shares of Procter & Gamble are trading only a few dollars away from their 52-week high of $75.18.

The world's most famous soft drink maker, Coca-Cola (KO@KO | Quote | Chart | News | PowerRating) has expanded beyond its mainstay Coca-Cola soft drink to make and market a variety of other beverages including energy drinks (Full Throttle), juices (Minute Maid and Odwalla), sports drinks ( Powerade), tea and coffee (Haru Green Tea) and bottled water (Dasani and vitaminwater).

Coca-Cola recently announced third quarter earnings per share growth of 15%. Net revenue growth for the third quarter increased by 19%.

McDonald's (MCD@MCD | Quote | Chart | News | PowerRating) is more than just the home of the Big Mac and America's favorite French fries. The third 10-rated stock in the Dow Jones Industrials, McDonald's has impressed consumers and investors alike with its ability to adapt to changing tastes in fast food, while still setting the standard for burgers, fries and shakes. Serving more than 52 million customers in more than 100 different countries, McDonald's enjoyed an 8.2% sales surge in November led by sales of dollar double cheeseburgers and cappuccinos in the United States and breakfasts in Europe and Asia. The companies foray into gourmet coffee has been widely recognized by analysts as a significant threat to the current king of coffee over-the-counter, Starbucks (SBX@SBX | Quote | Chart | News | PowerRating).

David Penn is Senior Editor at PowerRatings.net