There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

March 8, 2010 - Canadian National Railway (CNI-NYSE) together with its subsidiaries, engages in the rail and related transportation business in North America. It provides transportation for various goods, including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, and intermodal and automotive products.

This is Canada's largest railroad, and it's a strong presence in the U.S. It bought the Illinois Central Railroad in July, 1999; the Wisconsin Central in October, 2001, the BC Rail and GLT in 2004; the EJ&E in January, 2009.

Revenues in 2009 were made from hauling Petroleum and Chemicals (17%), Metals and Minerals (10%), Forest Products (16%), Intermodal (18%), Coal (6%), Grains and Fertilizers (18%), Automotive (5%) and Other (10%). Total sales were $6.45 billion. 10 analysts have a consensus estimate of $7.75 billion for this year (up 20.1% from 2009) and $8.53 billion in 2011. Much of that growth is expected to come from an improving economy, especially more car sales. With record corn and soybean crops in 2009, the bulk business will also increase this year. Adding to the bottom line will be a general rate hike of 4%.

There's a new management team at CNI. The previous CEO and chairman retired at the beginning of the year. Under his guidance the railroad became the most profitable train operator in North America. Fortunately, his successor is a veteran who knows the ropes. He was the company's chief financial officer before rising to the top.

One of the issues for CNI is its international business. If the Canadian dollar appreciates, it hurts the bottom line as U.S. dollars revert back to Canadian dollars at higher conversion rates. Analysts believe the Canadian dollar will mostly likely strengthen this year as the economy improves.

More numbers: Trailing P/E is 14.68 while the Forward P/E is 13.40. Price to sales ratio is 3.69 and the Price to book is 2.41. Book Value is $23.18. Operating margin in the last 12 months was 33.32%. Profit margin was 25.17%. Return on equity was 17.02%. Total cash is $342.18 million for 73 cents a share. Total debt is $6.28 billion. Current ratio is 1.21. There are 471.70 million shares outstanding with a Float of 470.36 million. Institutions own 68.40% of the stock. The dividend is $1.05 a year and takes 25% of earnings to pay. Value Line rates the stock as an A for Financial Strength.

Conservative investors should like this stock. The board of directors raised the dividend each year for the last 5, taking it from 96 cents last year to the current $1.05. The board also recently announced a stock buyback program.

If the Canadian dollar doesn't get too strong and auto manufacturers ship more cars, this stock should have a very good 2010 and beyond.

- Company Web site: www.cn.ca

- Ted Allrich