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Power Play: Big-cap stock attractive now

An employee helps a customer shop for a sander at a Lowe's home improvement store in Chicago, Illinois
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An employee helps a customer shop for a sander at a Lowe's home improvement store in Chicago, Illinois

Stocks turn lower as the Fed kicks off a 2-day meeting on interest rates.

Kate Warne, investment strategist at Edward Jones, tells CNBC's "Power Lunch" on Tuesday the Fed is in no hurry to move.

"We think the Federal Reserve will keep rates unchanged this week, but indicate that if the economy and job market continue to improve and international risks remain low, it plans to raise short-term interest rates later this year," Warne said.

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In this environment, Warne is looking at companies that are still attractively valued, with the potential for rising dividends over time. She has a buy rating on home improvement retailer Lowe's Companies and believes the company is well-positioned to benefit from a strong housing cycle as mortgage rates remain low.

"Lowe's has a dividend yield of 1.7 percent, with 14 percent dividend growth expected over the next 5 years," Warne said.

Lowe's is higher during trading and up 6 percent year-to-date.