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.

August 30, 2010 - CH Energy Group, Inc. (CHG-NYSE) through its subsidiaries, Central Hudson Gas & Electric Corporation (Central Hudson) and Central Hudson Enterprises Corporation (CHEC) engages in the electric utility, natural gas utility, and fuel distribution business.

CHEC markets petroleum products and related services to retail and wholesale customers, as well as provides service and maintenance of energy conservation measures and generation systems for private businesses, institutions, and government entities. It also has fuel distribution, including heating oil, gasoline, diesel fuel, kerosene, and propane; and the installation and maintenance of heating, ventilating, and air conditioning equipment in Virginia, West Virginia, Maryland, Delaware, and Washington, D.C.

In addition, CHEC participates in cogeneration, wind generation, biomass energy projects, landfill gas projects, and alternate fuel and energy production projects in New Jersey, New Hampshire, New York, Wisconsin, and Pennsylvania; and a corn-ethanol production project in Nebraska. CH Energy Group was founded in 1926 and is headquartered in Poughkeepsie, New York.

The story here is an earnings turnaround. The company saw earnings per share (eps) drop to $2.22 in 2008 from $2.70 in 2007. Last year, they bounced back to $2.74. This year, consensus estimate from 3 analysts is for $2.88. Next year, they see $3.12. Second quarter results were indicative of the trend:

43 cents per share for the second quarter of 2010, as compared to a 9-cent loss posted during the same period of 2009. Earnings for the first six months of 2010 totaled $1.72 per share, as compared to $1.37 per share earned during the first half of 2009. "Our earnings strongly recovered from the significantly depressed levels of 2009, continuing a trend that began with the delivery rate increase that took effect at Central Hudson in July 2009," said Chairman of the Board, President and C.E.O. Steven V. Lant. "These new rates were better aligned with our costs of providing service to customers, and they allowed Central Hudson to earn a more appropriate return." For the third quarter, analysts see 44 cents a share compared to 34 cents last year in the third.

CHG's stock price has been relatively quiet when compared to the rest of the market's roller coaster ride. While it slid below its normal range of $40 to $50 in 2008 (going as low as $33.40), it's been very consistent this year, trading between $37.75 and $43.70. With a defensive Beta of .39, Conservative investors should find this stock comforting.

More comfort: the dividend is a healthy $2.16 a share for a yield of 5.2%. The company has been paying the same rate since 1998. This year, the dividend will take about 74% of earnings to pay. The most recent quarterly payment was on August 1. The ex-dividend date was July 7. If those dates are an indication of when payment is made, expect the next ex-dividend date to be October 7 with payment on November 1. Value Line gives the company an A for Financial Strength.

More numbers: Trailing P/E is 13.74 while Forward P/E is 13.55. Price to book is 1.24. Book value is $34.40. Operating margin for the last 12 months was 10.28% while Profit margin was 5.24%. Return on equity was 8.05%, and Return on assets was 3.55%. Total cash is $43.73 million which is $2.76 a share. Total debt is $490.90 million. Current ratio is 1.46. There are 15.82 million shares outstanding. Institutions own 50.50% of the stock.

One other item readers will notice: this is a still a small stock, well under $1 billion in Marke Cap. That can create volatile price swings. But stock price history shows that rarely occurs. In fact, it's one of the more stable stocks. Part of that has to be from the solid dividend which keeps investors firmly invested as they wait each quarter for a check that has come consistently over the years.

Company Web site: www.chenergy.com

- Ted Allrich