Three Stocks to Buy That Deliver Big Profits and Low Risk By Tara Clarke

Best stocks to buy roundup for the week of Oct. 6, 2014:Each week our experts dish out the latest profit plays and asset-protection moves for our Money Morning Members - all for free.

Last week, our tech specialist warned readers against two stocks that Wall Street loves right now. He has two better alternatives. They both reward investors with big profits and low risk. Plus, both are cheaper than the Street's favorites.

Meanwhile, our executive editor recommended a familiar but under-the-radar investment. You're sure to know this company's brand and use its product. Why not let its stock enrich your portfolio for years to come?

You can find all of last week's tips and picks here in our latest list of the best stocks to buy now.

• Money Morning Defense & Tech Specialist Michael A. Robinson urges investors to tap into wearable tech. The sector will grow 78.4% through 2018 according to IDC. But he's not a fan of Wall Street's sweetheart pick: wearable sports camera maker GoPro (Nasdaq: GPRO). Shares have zoomed nearly 140% since the company went public in June. But Robinson warned Money Morning readers of GPRO's volatility. So far in October alone, shares are down more than 20%, with two single-day drops of 14% and nearly 9%. Robinson instead recommends a play that offers both safety and big profits - plus exposes investors to the entire wearable tech sector...

• Alibaba's (NYSE: BABA) debut in September marked the biggest initial public offering in history. However, only about 4% of the $25 billion worth of stock went to individual investors. That's why Robinson found a way to connect investors to BABA's enormous profit stream. But Robinson did better than that. His pick can be bought at a nearly 50% discount from BABA's current price. It's also got great long-term upside from IPOs - without all the short-term volatility.

• "Buy what you know." Sage advice from former Fidelity Magellan Fund manager Peter Lynch and Money Morning Executive Editor Bill Patalon last week. Patalon highlighted a company that's been around since 1953. It makes a great product we can pretty much guarantee you've used a few times. Nowadays, this company does business in 188 countries. In the fiscal year ended August 2013, it had $368.55 million in sales and $38.9 million in profit - a decent profit margin of 11%. This is an investment Patalon said "you should look to buy and keep for a long time"...

• Dividend stocks are an investor favorite in this low-yield era, and companies are wise to the trend. Dividend growth in Q3 2014 set a record. It was the first quarter in which total payouts to shareholders surpassed $90 billion. And Q4 is projected to post even higher payouts. In the week ending Oct. 3 alone, 14 companies grew their dividends and one declared a stock split. Here's the full list, including a small-town bank that's hiked its quarterly dividend for 20 straight years...