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.

July 13, 2009 - Colgate-Palmolive Co. (CL-NYSE) together with its subsidiaries, manufactures and markets consumer products worldwide. It operates in two segments, Oral, Personal, and Home Care; and Pet Nutrition.

The Pet Nutrition segment produces pet nutrition products for dogs and cats.

The company offers its products under the brands of Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Tom's of Maine, Ajax, Axion, Fabuloso, Soupline, Suavitel, Hill's Science Diet, and Hill's Prescription Diet. It sells to wholesale and retail distributors and to veterinarians and specialty pet retailers. The company was founded in 1806 and is headquartered in New York, New York.

In the last 3 months, Colgate has performed better than most stocks, up 20%. Much of that upward move comes from weakness in the dollar since Colgate does about 75% of its business outside the U.S. One of the best performing foreign markets has been Latin America which made up 26% of first quarter's revenues and even more of profits. Its share of the premium toothpaste market in Latin America is 78% and for manual toothbrushes, 41%. Colgate also saw an increase in market share for mouthwash, soaps, liquid cleaners and dishwashing soaps. Analysts think the region will continue to contribute significantly for the next several years as price hikes are accepted in countries used to inflationary economies and currency devaluations.

As with last week's Conservative Investment idea, Lancaster Colony, Colgate Palmolive has an envious record of raising its dividends, something it's done for the last 47 years. This year's annual payout should be $1.72, up from $1.56 last year. That produces a yield of 2.5%.

More numbers: Return on Equity was a remarkable, noteworthy 65% in 2008. This year, it should be 47%. Trailing P/E is 19 while the Forward P/E is 15.4. Price to Sales is 2.35. Price to Book is 22. Operating margin for the last 12 months was 21.4% while Profit margin was 13.22%. Total cash is $726.9 million. Total cash per share is $1.45. Total debt is $3.66 billion. Debt to equity is 1.8. Book value per share is $3.23. There are 499.56 million shares outstanding. Institutions have 73% of the stock.

Some of those valuation numbers are very high (price to book of 22!). But Colgate has always carried a high premium because of its ever increasing earnings, its high operating and profit margins, and its extremely strong return on equity. When a company performs this well, investors take notice and buy it. Conservative investors will find a lot to like about this company as they do more due diligence.

Company Web site: www.colgate.com

- Ted Allrich