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.

June 27, 2011 - Genuine Parts Company (GPC-NYSE) distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company operates in four segments: Automotive Parts Group, Industrial Parts Group, Office Products Group, and Electrical/Electronic Materials Group.

The Industrial Parts Group distributes industrial replacement parts and related supplies, such as bearings, mechanical power transmission, industrial automation, hose, hydraulic and pneumatic components, industrial supplies, and material handling products. This segment serves various industries, including the food, forest products, primary metal, paper, mining, automotive, petrochemical, and pharmaceutical industries.

The Office Products Group is in the wholesale distribution of a line of office and other business related products used in the daily operation of businesses, schools, offices, and institutions.

The Electrical/Electronic Materials Group distributes insulating and conductive materials, assembly tools, test equipment, and custom fabricated parts. This segment provides distribution services to original equipment manufacturers, motor repair shops, and assembly markets. The company was founded in 1928 and is headquartered in Atlanta, Georgia.

Genuine Parts is a genuine jewel. It increased the dividend payment every year for the last 55 years, recession or boom. It's hard to find companies that can match that record. And all the while, earnings covered those payouts comfortably. This year, the dividend will be $1.80 for a yield of 3.4%. With earnings expected at $3.41, that leaves plenty of profit left over to expand the business, buy others, purchase stock or most likely, increase the dividend again next year.

Earnings have been strong in spite of the recession. While there was a dip in 2009 to $2.50 from $2.92, the recovery to the bottom line has been swift and strong. Last year, earnings per share were $3.00. This year, 13 analysts have a consensus estimate of $3.41, then see $3.73 in 2012. For the second quarter (ending June 30), they see 89 cents vs 78 cents last year in the second. For the third quarter, expect 92 cents compared to 83 cents in last year's third.

First quarter results were a good precursor for the rest of the year. Earnings were up 27% to 80 cents a share. Without the unexpected lower tax rate, it was 21%. Revenues were impressively better as well: up 14% to $2.974 billion. Sales for 2011 should be $12.25 billion, up 9.3% from 2010. Next year, expect $12.84 billion. The industrial and electrical divisions in the first quarter reported solid sales gains while the company's largest business, the automotive sector represented by NAPA parts stores, were higher but not as much. For electrical and electronics products, revenues rose 39%, for the industrial group, up 24%, for automotive 9%, and for office products: up 5%.

That last division, office products, reflects the country's still sluggish economy. Without new employees, companies aren't buying as much paper, staples, desks, etc. Don't expect to see much positive change for this group until unemployment starts waning.

The stock's price has been steadily moving up since hitting a low of $24.90 in early 2009. Investors like the broad revenue base, the solid earnings, and the ever increasing dividend. That trend has all the indications of continuing. In the last 52 weeks, the stock is up 29.34%.

Essential numbers: Trailing P/E is 16.73 and Forward P/E is 14.22. Price to sales is .71 while Price to book is 2.87. Book value is $18.22. Operating margin for the last 12 months was 7.05% and Profit margin was 4.33%. Return on equity was 18.02% and Return on assets was 9.5%. Beta is .74. There are 157.32 million shares Outstanding with a Float of 153.14 million. Insiders have 2.63% of the stock while Institutions have 71.60% of the Float.

Conservative investors should find comfort in GPC's numbers and management. With a dividend payout that is a priority and revenues and earnings that keep growing along with ample cash in the bank, there's a lot to like here.

- Company Web site: www.genpt.com

- Ted Allrich