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 19, 2010 - Dupont (DD-NYSE) operates as a science and technology company worldwide. It has seven divisions: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals.

The Electronic & Communication segment supplies enabling materials and systems for alternative energy, electronics, flat panel displays, and advanced printing.

The Performance Chemicals segment provides a range of industrial and specialty chemical products, which include titanium dioxide, abrasives, fluorochemicals, and fluoropolymers.

The Performance Coatings segment primarily offers coatings, such as high performance liquid and powder coatings for the motor vehicle OEMs, the motor vehicle after-market, and general industrial applications, which include coatings for heavy equipment, pipes and appliances and electrical insulation.

The Performance Materials segment provides polymers, elastomers, films, parts, and systems and solutions for the automotive OEMs and associated after-market industries.

The Pharmaceuticals segment represents its interest in the collaboration relating to Cozaar/Hyzaar antihypertensive drugs. DuPont was founded in 1802 and is headquartered in Wilmington, Delaware.

DuPont suffered through the recession, like most others. Revenues slipped from $30.529 billion in 2008 to $26.109 billion in 2009. Earnings started sliding a year earlier, going from $3.28 in 2007 to $2.78 in 2008, then $2.04 last year. But both numbers are about to change for the better.

Analysts see total sales rebounding to $29.99 billion this year (a 14.90% improvement), then hitting $31.78 billion next year. Earnings are forecast at $2.64 in 2010, then $2.94 in 2011. Quarterly earnings will be out on July 27. Look for 93 cents in the second quarter, up from 61 cents in last year's second period (up 50%). For the third quarter, the estimate is for 25 cents, down from 45 cents in last year's third.

Three divisions accounted for the 23% increase in sales in the first quarter: Performance Polymers, Electronics & Communications, and Titanium Technologies. Increased demand was significant from the Asia/Pacific region. While sales increased, costs went down for raw materials, energy and freight. For the quarter, earnings were $1.24, more than double the 54 cents of the first quarter in 2009.

DuPont is well positioned for certain global trends: increasing population and a larger middle class in developing countries which should increase demand for food, alternative energy and environmental solutions as well as products that increase safety. Emerging markets should provide the best opportunities. Helping the bottom line will be management's focus on improving productivity as sales increase.

There are a couple of strong reasons Conservative investors should find this stock of interest. First is the company's strong financial strength: A++ by Value Line. The second is the dividend of $1.64 a share or a yield of 4.6%. The dividend takes about 60% of this year's forecasted earnings. While it wasn't raised last year, the company has a history of increasing the dividend. In 1994, it was 91 cents a share. While it stayed at $1.40 from 2000 to 2004, it hasn't gone down in any year.

More numbers: Trailing P/E is 13.68 while the Forward P/E is 12.20. Price to sales ratio is 1.13. Price to book is 4.21. Book value is $8.55. Return on equity was 31.54% in the last 12 months. Return on assets was 6.15%. Total cash per share is $4.98. Total debt is $11.03 billion or 54% of capital. Current ratio is 2.03. Beta is 1.46. There are 906.04 million shares outstanding with a Float of 904.58 million. Institutions own 65.10% of the stock. The last dividend was paid on June 10. The ex-dividend date was May 12.

Dig a little deeper into DD if you think the global economy will continue to recover. DuPont serves many needs in many markets including automotive, construction, agriculture, medical, protective apparel, electronics and nutrition. It has a strong balance sheet, a good dividend, and bright future. Total return (with a boost from the 4.6% yield) should be attractive for years to come. Unless recovering economies start to unrecover.

- Company Web site: www.dupont.com

- Ted Allrich