Top 10 Forever Stocks | a series brought to you by Wyatt Investment Research ----------------------------------------­----------------------------------------­--------- Forever Stock No. 3 is Caterpillar (NYSE: CAT). For this report, I researched a range of industries to bring you stocks that should hold up regardless of market conditions. To keep your portfolio diversified, I chose companies across several unrelated industries, including energy, healthcare, financials, technology, industrial goods and consumer staples. What’s more, several pay healthy dividends, a must in today’s low-interest-rate environment. These stocks are built to last, meaning you should hold onto them for the long haul. I’m sure you’ll be pleased with their performance for many years to come. ----------------------------------------­----------------------------------------­---------

1. Caterpillar
(NYSE:CAT)
A Stock That Could Turn Into a Butterfly
F O R E V E R S T O C K N O . 3
Source: Equipment World

2. We think of Caterpillar (NYSE:CAT) as a distinctly
American company. After all, what’s more
American than riding a tractor or moving some
dirt around in a bulldozer?
F O R E V E R S T O C K N O . 3

3. F O R E V E R S T O C K N O . 3
The company has been selling its signature tractors out of California
since 1925. It eventually expanded into construction vehicles, and
these days the company’s familiar “CAT” symbol can be seen at almost
every construction site across the country.

4. But Caterpillar’s growing presence in emerging
markets such as Brazil, China and India should
sustain the company for years to come. Sales in
China rose by 20% in 2013 despite a slowdown in
its economy.
F O R E V E R S T O C K N O . 3

5. Caterpillar is already the world’s largest
manufacturer of construction and mining equipment,
diesel and natural gas engines, industrial gas turbines
and diesel-electric locomotives. More than half the
company’s sales are outside the U.S., as it serves
more than 180 countries worldwide.
WORLD’S LARGEST MANUFACTURER
F O R E V E R S T O C K N O . 3

6. Now, with emerging markets such as China
and India rapidly expanding their
infrastructure, the need for Caterpillar
equipment is on the upswing.
F O R E V E R S T O C K N O . 3

7. While weak demand for equipment from the mining
industry has increased cost-cutting efforts into 2014
and beyond, the $68.7 billion company expects its
industry-dominating construction business to make
up for some losses there.
$ 68.7 BILLION COMPANY
F O R E V E R S T O C K N O . 3

8. the company has increased its dividends for 20
straight years and seen its shares quadruple over the
past decade. The current dividend is $2.24 per share,
up from $0.78 per share 10 years ago. Caterpillar did
$56 billion in revenue over the past year, with net
income nearly $4 billion. So look for that dividend
growth to continue.
F O R E V E R S T O C K N O . 3
It’s no wonder,

9. As mentioned earlier, early on the company built its
reputation on selling farm equipment. Given that
U.S. farms produced record profits in 2011 and that
the world’s population recently broke the seven-
billion mark, farm equipment is a good place to do
business.
WORLD’S MOST SUCCESFUL INVESTOR
F O R E V E R S T O C K N O . 3
7 BILLION MOUTHS TO FEED

10. Obviously, people need food. And more people
means more demand for food and the farms
and machinery that produce it.
F O R E V E R S T O C K N O . 3

11. The diesel and
natural gas side of
Caterpillar’s
business fits nicely
with both its
construction and
farming equipment
segments. Much of
that machinery
requires fuel, which
Caterpillar happily
provides.
F O R E V E R S T O C K N O . 3

12. Mining, forestry and even retail and wholesale financing are
other areas of Caterpillar’s business. Such a wide array gives
the company enough flexibility to generate diverse income
streams. The company should be able to weather economic
downturns in various regions and business sectors.
According to consensus analyst expectations, Caterpillar is
primed to grow its profits 23% annually for the next five years.
With the stock trading at 17 times earnings at the moment,
that’s a fairly sizable discount.
DIVERSE INCOME STREAMS
F O R E V E R S T O C K N O . 3

13. But Caterpillar isn’t a stock you would want to sell in five
years. Its long-term prospects are too enticing. More roads
and bridges must be built, more oil and coal must be mined,
and more crops will need seeding. All those functions require
the use of heavy machinery that forms the core of
Caterpillar’s business.
With nearly a century of growth under its belt and a name
recognized around the world, Caterpillar is a stock worth
buying now and holding onto for many years. Who know? In
30 or 40 years, it could turn into a butterfly.
A LONG-TERM OPPORTUNITY
F O R E V E R S T O C K N O . 3

14. Ready for more?
N O . 4 Teva Pharmaceutical Industries Ltd (Nasdaq:TEVA)
N O . 5 Cameco Corp. (NYSE:CCJ)
N O . 6 Johnson & Johnson (NYSE:JNJ)
N O . 7 Bunge Limited (NYSE:BG)
N O . 8 Goldman Sachs (NYSE:GS)
N O . 9 Qualcomm (Nasdaq:QCOM)
N O . 1 0 ConocoPhillips (NYSE:COP)