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 18, 2008 - IBM Corp. (IBM-NYSE) develops and manufactures information technologies, including computer systems, software, networking systems, storage devices, and microelectronics worldwide. Its Global Technology Services segment offers IT infrastructure and business process services, such as strategic outsourcing, business transformation outsourcing, integrated technology, and maintenance.

IBM's Software segment primarily offers middleware and operating systems software comprising information management software for database, content management, and information integration; lotus software for collaboration, messaging, and social networking; rational software, a process automation tool; Tivoli software for infrastructure management, including security and storage management; Websphere software for Web-enabled applications; and product lifecycle management software.

The company's Global Financing segment provides commercial financing to dealers and remarketers of IT products; lease and loan financing to external and internal clients; and sale and lease of used equipment. IBM serves banking, insurance, education, government, healthcare, life sciences, aerospace and defense, automotive, chemical and petroleum, electronics, distribution, and communication markets.

The company was founded in 1910 as Computing-Tabulating-Recording Company and changed its name to International Business Machines Corporation in 1924. IBM is based in Armonk, New York.

On July 18, AP reported the Armonk, N.Y.-based company saw profit leap 22 percent in the second quarter, sailing past Wall Street estimates on the continued strength of its bread-and-butter services division.

IBM continues to thrive despite the economic malaise in the U.S. because of its broad international penetration and highly profitable blend of services, software and hardware, which helps shield the company from downturns in specific sectors or geographic regions.

After the earnings announcement, IBM raised its profit outlook for 2008, expecting to earn at least $8.75 per share on the year, up 25 cents per share over the previous guidance.

More than half of IBM's business comes from selling services to companies looking to cut costs or better manage their information technology infrastructure. That business has held up remarkably well for IBM despite fears that the economic downturn in the U.S. has started to pinch off corporate spending in other parts of the world.

IBM earned $2.77 billion, or $1.98 per share, in the three-month period ended June 30. That's 16 cents per share higher than the average estimate of analysts polled by Thomson Financial. Last year IBM made $2.26 billion, or $1.55 per share, for the same period.

Sales for the period jumped nearly 13 percent to $26.8 billion, about $900 million more than analysts were expecting. That revenue rise would have been just 6 percent, however, if not for weakness in the dollar. Deals IBM does in other currencies translate into more dollars as the U.S. currency falls.

As expected, some of IBM's strongest growth came from its services divisions in the second quarter. Technology services grew 15 percent to $10.1 billion, and business-consulting revenue rose nearly 18 percent to $5.11 billion.

Investors closely monitor how many new service contracts IBM inks during a particular quarter because it helps gauge the company's future revenue. That figure jumped 12 percent in the second quarter to $14.7 billion.

The health in services and software, which saw a 17 percent revenue rise, helped overcome growth of just 5 percent in IBM's hardware business, to $5.2 billion. That would have been flat without the soft dollar.

There were some concerns that IBM's sales and general administrative costs went up sharply in the quarter, rising 12 percent to $6.3 billion, which could hurt profits in the future if those outlays continue rising. But financial analysts were impressed with the company's overall performance.

More numbers: Analysts see earnings at $8.56 this year and $9.59 next year. Price to Sales is 1.72. Price to Book is 6. Book Value is $21. Current assets are 1.03 times current liabilities. Total Debt to Equity is 1.225. There are 1.37 billion shares outstanding. 62% of those are held by institutions. There's an annual dividend of $2.00 for a yield of 1.6%.

IBM just keeps going and going and growing and growing. It's boring really. For conservative investors, it's boring in a delightful way.

- Company Web site: www.ibm.com

- Ted Allrich