July closed with a 300-point loss by the Dow Jones Industrial Average, triggering fears that a long anticipated correction might be under way; our view is that the sky is not falling , notes David Fish, Editor of Moneypaper.

But, although the DJIA dipped slightly below where it started the year, the S&P 500 is still up by almost 4.5% and the NASDAQ Composite has gained 4.6%, led by 'old tech' companies like Intel (INTC) and Microsoft (MSFT), which have been transformed into steady, reliable dividend payers.

Price/earnings multiples are reasonable at 15-20, in sharp contrast to the Dot.com days when companies that actually had earnings traded at twice the P/Es that are common now.

So, the logical reaction to the current sell-off would be to buy, not sell out of panic, taking advantage stocks that are On Sale.

Founded in 1912, Illinois Tool Works (ITW) manufactures components and fasteners for automotive, construction, and industrial uses, as well as specially engineered products, machinery, and consumables for the automotive, construction, and food and beverage industries.

Its growth strategy includes acquisitions, which have helped it expand to over 800 operating companies in 58 countries. Foreign sales accounted for 57% of the $14.75 billion in 2013 revenues.

The company is expected to earn about $4.59 per share in 2014 and $5.28 per share in 2015, compared with $3.63 in 2013.

The annual dividend, which has been increased for 39 consecutive years, now totals $1.68 per share, for a yield of 2%. Insiders own 3.3% and Northern Trust owns 10.4% of the 412.6 million shares, which is down from 617.3 million in 2003.

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