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 30, 2009 - Verizon Communications (VZ-NYSE) provides communication services in the United States and internationally. It operates in two segments, Wireline and Domestic Wireless.

The Wireline segment provides voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, and long distance services to consumers, carriers, businesses, and government customers. It operatesa fiber-to-the-premises (FTTP) network under the FiOS service mark that offers bandwidth, and designed to handle future broadband and video applications. As of December 31, 2008, this segment's wireline network included approximately 36,161,000 wireline access lines, 8,673,000 broadband connections, and 1,918,000 FiOS TV customers. It operates in 28 states and Washington, D.C.

The Domestic Wireless segment offers wireless voice and data products, and other value-added services, as well as sells equipment. This segment serves approximately 80 million customers. It operates in 50 states and Washington, D.C. and in 19 countries. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications was founded in1983 and is based in New York, New York.

The company started as Bell Atlantic, one of the regional "Baby Bells" after the AT&T divestiture ruling. Then it combined with GTE to form Verizon. In January of 2006, it bought MCI. In January of 2009, it purchased Alltel. Beside the wireline and wireless business, Verizon is the largest provider of print and on-line directory information.

2008 revenues were $97.354 billion (up from $93.469 billion in 2007). Wireline sales were 49% of the total while domestic wireless was 51%. This year analysts expect revenues of $107.88 billion, then $109.77 billion in 2010. Sales are expected to grow by 5% a year, on average, for the next 5 years.

On the earnings side, analysts see modest growth for the next 5 years, expecting annual gains of 3.8%. In 2008, earnings per share were $2.54. The consensus estimate for 2009, among 29 analysts, is for $2.53, then in 2010, $2.68. Next earnings announcement will be on July 27 for second quarter results. Predictions are for 63 cents a share, down from 67 cents in the same period last year. For the third quarter, look for 64 cents a share, down a little from 66 cents last year.

The focus for Verizon is on its Wireless division. Management announced in May that it intends to sell its wireline local and small-business service in 14 states. Frontier Communications as agreed to buy the customers for about $8.6 billion. Verizon will then have added cash for its fastest growing groups of businesses: wireless, fiber based wireline, and global Internet Protocol networks. Before the sale is final, it needs Frontier's shareholder approval, regulatory approvals and satisfaction of normal acquisition conditions, including how the deal will be financed.

Part of the reason for better revenue growth than earnings, at least in the short run, is the recent acquisition of Alltel. That purchase made Verizon the largest wireless company in the U.S. when measured by total customers and revenues. But the final cost of Alltel was higher than originally estimated thus impairing the ten cents a share accretion expected for 2009.

New customers continue to join the Verizon network. In the first quarter alone, 1.3 million new phones were added. That's without the Alltel customer base. When the large jump in wireless data revenues is added to the wireless customer sales, first quarter wireless-generated revenues jumped by 30%.

More numbers: Trailing P/E is 13.77; Forward P/E is 11.62. Price to sales is .88. Price to Book is 2.10. Operating margin for the last 12 months was 18.57% while Profit margin was 6.42%. Return on Equity was 13.96%. There's $4.35 billion in cash that makes $1.53 in cash per share. Total debt is $69.13 billion. Current ratio is .624. Book Value is $14.73. There are 2.84 billion shares outstanding with a float of 2.79 billion. Institutions have 60.70% of the stock. The annual dividend is $1.84 for a yield of 5.9%. It takes 78% of earnings. Value Line gives the company an A+ rating for financial strength.

Conservative investors should find VZ of interest. The dividend has been raised for each of the last 3 years and gives a decent return. The stock is well off its all-time high of $66, set in 2000, shortly after the merger with GTE. While the price got hit late last year and bottomed at $23.10, that seems to be a function of the general market meltdown rather than specifics to the stock. The price has rebounded fairly well since then.

- Company Web site: www.verizon.com

- Ted Allrich