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.

February 28, 2011 - Covidien plc, (COV-NYSE) develops, manufactures, and sells healthcare products for use in clinical and home settings in the United States and internationally. The company's Medical Devices segment provides endomechanical instruments, which include laparoscopic instruments and surgical staplers; soft tissue repair products, such as sutures, mesh, biosurgery products, and hernia mechanical devices; and energy devices, including vessel sealing, electrosurgical, and ablation products and related capital equipment. This segment also offers oximetry and monitoring products comprising sensors, monitors, and temperature management products; airway and ventilation products that include airway, ventilator, breathing systems, and inhalation therapy products; and vascular therapy and compression products.

The Medical Supplies division provides nursing care products, such as incontinence, woundcare, enteral feeding, urology, and suction products; and medical surgical products that comprise operating room supply products and related accessories, electrodes, thermometry, and chart paper product lines. It also offers SharpSafety Products, which include needles, syringes, and Sharp's disposal products; and original equipment manufacturer products.

Covidien serves hospitals, surgi-centers, and drug manufacturers, as well as alternate site facilities, including long-term care facilities and imaging centers. It has a product in almost every hospital in the U.S. and is expanding globally. The company is based in Dublin, Ireland.

Here are three outstanding characteristics about COV: increasing sales, increasing profits and increasing dividends over the last 3 years, some of the toughest times for companies in memory. While the stock has only been public for 4 years (it had its IPO on June 14, 2007 when it was separated from Tyco International), management has shown an ability to deliver even in difficult times.

For the March quarter earnings, look for results of 89 cents a share, up from 86 cents in last year's second period.

Earnings have been helped by better tax rates, going from 20-21% down to 18.5%. There's an R&D tax credit that's been extended in Ireland. Management has been pro active planning for taxes and expects an even lower tax rate as the programs continue.

Look for the economy improving to boost results as unemployed people get back to work and are covered by corporate health plans. More elective surgeries could also be scheduled. Don't expect these improvements to happen for at least 12 months but when they do, more of COV's equipment will be put to use, raising earnings.

The board of directors has authorized buying shares and increased the dividend. The stated policy of the company is to return 25% to 40% of free cash flow back to shareholders in the form of dividends and share buybacks. Look for total shares to shrink by 4% over the next 3 to 5 years. And expect the dividend to keep going higher. Currently it's 80 cents a year, up from 74 cents last year. The year before it was 66 cents. The yield is 1.6% at current prices.

Essential numbers: Trailing P/E is 15.55 while the Forward P/E is 12.30. Price to sales ratio is 2.37. Price to book is 2.69. Book value is $18.87. Operating margin for the last 12 months was 21.71% and Profit margin was 15.61%. Return on equity was 18.00% and Return on assets was 7.67%. There's $1.15 billion in cash for $2.33 a share. Total debt is $4.36 billion. Debt to equity is 46.81%. Current ratio is 2.23. There are 493.85 million shares outstanding with a Float of 492.82 million. Insiders own 4.53% of the stock. Institutions have 87.50% of the Float.

Conservative investors like stocks like this: good solid growth in all the right areas. And valuations aren't high. The balance sheet is solid. The only caveat is that many investors have already discovered the goodness here and bid up the price. The stock hit an all-time high in 2008 at $57 a share. It's getting close to that again. It can breakthrough if the economy picks up and unemployed workers can get health coverage again.