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A safe and consistent way to earn in any market is to buy healthy stocks at a discount. A good stock has to be able to earn in almost any market, keep costs low, have high growth and low debt. A dividend only adds to the safety of these stocks as investors can realize a return without ever selling, and it may mean that the company is in good financial health. Many investors turn to these types of stocks for their safety, which generally makes them overpriced. The key to buying safe stocks is to buy them when they're at a discount.

Now is a great time to utilize this value strategy, since the market has been volatile and unpredictable. In addition, many stocks are still at a relatively low price. If you're looking for a high return that carries relatively low risk, I recommend considering the following stocks that are priced below their Intrinsic Value. Waiting for the market to realize a company's intrinsic value is a lengthy process, so dividend income is desired.

In addition, I have recommended specific covered call strategies for each stock as a way to enter. This may reduce risk and volatility, and increase income. One can receive payments on a regular basis, adding to the dividend income. Please understand the risks of options before using them. This intrinsic price was calculated by estimating how much the stock will earn while it is held, and how much it can be sold for in the future. ReturnResale is the formula used for this calculation. ReturnResale is proprietary property of SmartTrends. All of the calculations for Intrinsic Value were done using the App Easy Value.

1. Microsoft Corporation (NASDAQ:MSFT):

Dividend: 2.65%

P/E: 9

5 Year Projected EPS Growth: 10%

Profit Margin: 33%

Return on Equity: 44%

Debt to Equity: 22/100

Intrinsic Value: $52.69

Discount: 105.34%

Covered Call Strategy: 2012 February $27 Call

2. Freeport-McMoRan Copper & Gold Inc (NYSE:FCX):

Dividend: 2.5%

P/E: 6

5 Year Projected EPS Growth: 9%

Profit Margin: 31%

Return on Equity: 40%

Debt to Equity: 20/100

Intrinsic Value: $96.52

Discount: 138.09%

Covered Call Strategy: 2012 January $44 Call

3. Intel Corporation (NASDAQ:INTC):

Dividend: 3.13%

P/E: 10

5 Year Projected EPS Growth: 11%

Profit Margin: 25%

Return on Equity: 27%

Debt to Equity: 16/100

Intrinsic Value: $46.97

Discount: 85.30%

Covered Call Strategy: 2012 March $27 Call

4. Occidental Petroleum Corporation (NYSE:OXY):

Dividend: 1.8%

P/E: 12

5 Year Projected EPS Growth: 18%

Profit Margin: 26%

Return on Equity: 18%

Debt to Equity: 16/100

Intrinsic Value: $183.82

Discount: 89.19%

Covered Call Strategy: 2012 February $105 Call

5. Corning Incorporated (NYSE:GLW):

Dividend: 1.65%

P/E: 7

5 Year Projected EPS Growth: 9%

Profit Margin: 43%

Return on Equity: 17%

Debt to Equity: 10/100

Intrinsic Value: $39.96

Discount: 187.90%

Covered Call Strategy: 2012 January $15 Call

Companies that are able to have a high return, high growth, dividends, low costs and low debt are generally considered a good investment. However, due to their safety, they often carry a hefty price tag. Therefore, an investor should seek a discount, especially in uncertain times. Using covered calls can deepen the discount that one receives, lowering the risk and increasing income.

These five companies do not only pay dividends, but they also have relatively low debt, high profit margins, high returns, and are a good value. They are well known, established brands that won't be going anywhere anytime soon. The market may be slightly higher than it was a few months ago, but these stocks are still great deals. Many investors prefer the fame of a company such as Coca-Cola (NYSE:KO), but I believe that because of the discount these stocks hold, they are a better investment. Look past what others do, be an independent investor, and consider these stocks. Their low prices and low-risk natures put them far above others.

Source: 5 Covered Calls Offering Value And Safety