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.

October 31, 2011 - Honeywell International Inc. (HON-NYSE) operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment provides turbine propulsion engines, auxiliary power units, environmental control and electric power systems, engine systems and accessories, avionic systems, aircraft lighting, inertial sensors, control products, space products and subsystems, and landing products for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations, as well as offers management and technical, logistics, aircraft wheels and brakes and repair, and overhaul services.

Specialty Materials division provides resins and chemicals; hydrofluoric acid; fluorocarbons; fluorine specialties; nuclear services; performance chemicals; chemical processing sealants; fibers and composites; specialty films and additives; imaging and electronic chemicals; semiconductor materials and services; catalysts, adsorbents, and specialties; and renewable fuels and chemicals. It sells to refining, petrochemical, automotive, healthcare, agricultural, packaging, refrigeration, appliance, housing, semiconductor, wax, and adhesives markets. It also provides process technology and equipment for the petroleum refining, and petrochemical and gas processing industries.

The Transportation Systems segment manufactures charge-air systems; thermal systems; filters, spark plugs, electronic components, and car care products; and brake hard parts and other friction materials for passenger cars and commercial vehicles. The company was founded in 1920 and is headquartered in Morris Township, New Jersey.

This is one solid stock. By almost any measure, it gives comfort to investors. Want a solid balance sheet? The company carries an A++ rating for Financial Strength. Want earnings growth? It's here (see below). Want a relatively low P/E? How about a Forward P/E of 11.6. Want a dividend? HON will pay you $1.33 annually for a yield of 2.6%. This is a stock Conservative investors will find of interest.

About those earnings: they fell in 2009 to $2.85 from $3.75. Hard to find a company that didn't see lower sales and earnings in '09. But last year, earnings per share (EPS) bounced right back, going to $3.00. This year, 16 analysts see a big jump with a consensus estimate of $3.97 (up almost 33%). For 2012, they forecast $4.41 (with a range of $3.97 to $4.75).

For the third quarter, eps estimate was for $1.00, well above the 76 cents earned last year in the third. Actual results: $1.10 or 10% ahead of estimates. Total revenue was $9.3 billion, up 14%. The company reported revenue increases in all segments. Sales were up 8% from organic growth, the remainder from acquisitions. For the final quarter, expect $1.08 vs 87 cents in last year's fourth.

Because HON has such a wide diversity of products and international markets, sales and earnings are closely tied to the global economy. Most investors aren't very optimistic about global economic growth currently. That probably explains why the stock was down almost 20% this year before it started to turn around. But actual numbers at the company suggest orders are still growing and demand is strong.

Revenues in the second quarter went to $9.086 billion, almost a billion dollars more than the $8.161 billion in last year's second period. Consensus estimate for this year's total sales is $36.71 billion, 10% above last year's $33.37 billion. Next year, expect $38.87 billion, up another 5.9%. Sales are rising and so is backlog.

Essential Numbers:
- Trailing P/E: 14.73
- Forward P/E: 11.56
- Price to sales ratio: 1.07
- Price to book value: 3.36
- Operating margin: 10.37%
- Profit margin: 7.46%
- Return on equity: 23.34%
- Return on assets: 6.15%
- Total cash: $4.4 billion
- Cash per share: $5.68
- Total debt: $8.16 billion
- Debt to equity ratio: .69
- Current ratio: 1.33
- Book value per share: $15.08
- 52 week change: 7.25%
- Shares outstanding: 773.5 million
- Float: 772.83 million
- Insiders own: .04%
- Institutions own: 81.2%
- Dividend: $1.33
- Yield: 2.6%

Conservative investors will only see a one or two numbers that are a little uncomfortable. Price to book value of 3.36 is one of them. Hard to find the other one. But many will make them smile, like all that cash, a decent dividend (the dividend hasn't gone down for almost 20 years, only higher or stayed the same), a solid return on equity. There are many more. Spend some time with HON, compare it to most other companies, and while there isn't a catalyst that will catapult the stock higher, steady earnings growth seems to be its future.

- Company Web site: www.honeywell.com