Caterpillar Reports Big Quarter, Bullish Forecast Despite Overseas Pressure

Investor's Business Daily - Despite recent reports indicating a weakening global economy, the construction and mining equipment giant boosted its dividend and affirmed its full-year forecast. Caterpillar , seen as a bellwether of int'l economic growth, raised its quarterly dividend 4.5% to 46 cents and backed its 2011 EPS outlook of $6.25-$6.75 vs. views of $6.85, on revenue of $52 bil-$54 bil, the midpoint below views. Shares fell 1.8% to 98.04.

Brian Rezny submits: We’ve all heard about “too big to fail”…but what about too big to succeed? In a recent letter, Research Affiliates discussed this very topic, and it deserves another mention. The question: are large-cap, blue chip stocks a good deal…or are they really too big to succeed? The answer: It depends on who you ask. According to some fund managers, blue chips are a bargain.

By Spencer Knight: Blue-chip stocks are great investment decisions for a number of reasons. One of the most important reasons is that blue-chip companies are supposed to be strong enough to withstand economic turmoil. A second reason to invest in blue chips is the history of paying a dividend. In theory blue chips are strong enough to continually pay and increase their dividend regardless of the economic environment.

By David Alton Clark:The following Blue Chip stocks have the highest EPS growth rates in the Dow over the current fiscal year, great stories and positive catalysts for future growth. Blue Chip stocks are seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. Investors may buy blue chip companies to provide solid growth in their portfolios.

By David Alton Clark: The Gist The stocks covered in this article are blue chip S&P 500 large cap or better stocks with dividend yields of 3% or better. AT&T, Inc. (T) has the highest with a yield of 4.98% while Johnson & Johnson (JNJ) has the least, yet still substantial, at 3.08%. See chart below.

By Dane Bowler:Valuation is always relative and in flux. A stock's relative value can move as the securities with which it is compared change, even in the absence of price fluctuation or changes to the underlying company. The more comparisons by which a security is a relative value, the better its value.

By David Alton Clark:In this article, we will discuss the following stocks: Microsoft Corporation (MSFT), General Electric Company (GE), Intel Corporation (INTC), JPMorgan Chase & Co.

By David Alton Clark:In this article, we will discuss the best performing Dow Blue Chip stocks so far in 2011. According to the New York Stock Exchange, a blue chip is a stock in a corporation with a national reputation for quality, reliability and the ability to operate profitably in good times and bad. The most popular index that follows U.S. blue chips is the Dow Jones Industrial Average (DJIA).