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I recently wrote an article about the wisdom of buying blue chip stocks when they get hit by a general market sell-off and provide a 4% yield, or more than twice the 10 year treasury currently. Here are two more blue chip equities with low valuations that are approaching that magical level.

Dupont (NYSE:DD) – “E. I. du Pont de Nemours and Company operates as a science and technology company worldwide. It operates in seven segments: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals”. (Business description from Yahoo Finance)

4 reasons why Dupont is a solid long term buy:

Target Price: $41

1. Dupont has an A rated balance sheet and a juicy 3.8% yield.

2. Dupont is going to be able to benefit from the continuing low prices and abundant supplies of North American natural gas, which is a primary feedstock.

3. A quarter of its sales are from agricultural sales. It owns Pioneer Hi-Bred, the largest seed company in the world. The growing need for better food supplies in the developing world should provide a long term tailwind for this segment.

4. Dupont is under analysts’ price targets. The median analysts’ price target is $54. It is also priced at just over 10 times forward earnings.

ConocoPhillips (NYSE:COP) – “ConocoPhillips operates as an integrated energy company worldwide. The company’s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids”. (Business description from Yahoo Finance)

4 reasons COP is a bargain:

Target Price: $66

1. It is using its robust cash flow to retire shares. It is on track to buy back over 150mm shares in 2011.

2. COP has an A rated balance sheet, provides a current 3.8% yield and has a low beta (1.10) for an energy stock.

3. Splitting off its downstream assets should be a long term catalyst for unlocking shareholder value.

4. Consensus earnings estimates for 2011 and 2012 have moved up in the last 60 days and its sells for just 8 times forward earnings.

Disclosure: I am long COP.

Source: 2 Blue Chips About To Yield 4%