Stocks are rallying on Monday, with the Dow and moving out of a correction. But year-to-date, the Dow and S&P are still down more than 4 percent.
Burns McKinney, portfolio manager at NFJ Investment Group tells CNBC's "Power Lunch" the recent pullback has created value in the market.
"Equities shouldn't generate double digit returns, but with stocks yielding this much more than treasuries, they look good compared with fixed income, " McKinney said.
"We are looking for companies with attractive dividends, with pricing power to keep growing payouts," McKinney said.
Wal-Mart is down 22 percent over the past year, while Quest Diagnostics is off 7 percent.