Dow's Best Value Plays in 'New Normal' Economy

BOSTON (TheStreet) -- On Sept. 21, I suggested investors may do better with blue-chip stocks than with small-caps. Since then, the Russell 2000, a barometer for small-company shares, has dropped 9%, while the Dow Jones Industrial Average of the 30 biggest U.S. companies has remained flat.

Investors typically have been willing to pay a premium for growth stocks, those with the fastest earnings increases. But in a new normal economy, marked by banks' unwillingness to lend and consumers' newfound tightwad posture, investors will pay a premium for safety. These days, the best investments are established companies with international diversification and brand power.

Sifting through oodles of large-cap stocks can be draining, so here are three Dow members that offer compelling value and hefty payouts. They receive less attention than the rest of the pack, but are likely to achieve growth even if the economy struggles. ...