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.

January 31, 2011 - Coca-Cola Co. (KO-NYSE) manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. The company's sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as energy drinks, and carbonated waters and flavored waters.

The Coca-Cola Company also offers fountain syrups, syrups, and concentrates, such as flavoring ingredients and sweeteners. It markets primarily under the Coca-Cola, Diet Coke, Fanta, and Sprite names. The company sells mostly to distributors, and beverage concentrates and syrups to bottling and canning operators, distributors, fountain wholesalers, and fountain retailers. The Coca-Cola Company was founded in 1886 and is headquartered in Atlanta, Georgia.

We all know it as Coke. It's the world's largest beverage company. In 2009, 74% of sales were outside the U.S. It spent 9% of revenues on advertising that year. Revenues were almost $31 billion. Probably explains why it's the most recognized brand in the world. When you spend money like that, people have to remember you. You're always in front of them. That recognition turns into dollars. Last year, sales most likely finished at $34.28 billion. Anlaysts think this year will show $43.45 billion, thanks to its recent purchase of Coca-Cola Enterprise's North American bottling operations. (The range from 15 analysts is from $33.80 billion to $49.96 billion.)

Earnings should go higher as well, though not at the pace of sales. Over the last 5 years, they've averaged 11.27% annually. For the next 5 years, analysts think the growth will slow to 8.70% a year, on average. When you're this big, growing becomes a challenge. Last year's earnings should be $3.49, up from $3.06 in 2009. For all of this year, 19 analysts see $3.85. Final quarter of 2010 should show 72 cents vs 66 cents in fourth quarter of 2009. For the first quarter of 2011, expect 85 cents compared to 80 cents in 2010.

It's easy to like KO, but it's hard to get excited about it. The stock really hasn't done very much over the last 5 years, yet it has continued to deliver good earnings and a solid dividend to investors. To expect it to "break out" and soar isn't realistic. But if owning a stock that is solid as a rock is a comfort, then KO will give great comfort.

The latest acquisition (the bottling arm of Coca-Cola Enterprise for North America) is already showing positive results. It was purchased on October 1st for $12.3 billion. Management sees progress more quickly than initially estimated. It believes the new purchase will show cost savings in 2011 of $150 million, above the original $125 million estimated. Over three years, it expects to realize $350 million in savings.

Management is also looking at other ways of boosting earnings. It recently bought back $1 billion in debt that was used to buy the bottling company. That will help lower interest expense going forward.

One concern here is the rising cost of some materials. The cost of transportation, specifically higher prices for diesel fuel, has gone up. So has the raw material used to make plastic bottles. Those will be mitigated by the bottling company's savings. The expense next year shouldn't be as bad since management fully hedges all of the bottling company's commodity costs.

You might think Coca-Cola has saturated its markets. But that's not the case. China and India, both with strong economies, offer large markets, mostly untapped. There are also many new products, especially in the non-carbonated group, that have yet to be introduced in many markets.

There is a new red flag waving for Coke. It's the increasing focus on health. The company is hearing from many sides about selling empty calories and contributing to growing waistlines in the U.S. and other developed countries.

Here's the dividend history. It goes up every year. In 1994, it was 39 cents a share. Last year it was $1.76. This year, it's not declared yet but expect it to be higher again. The yield at $1.76 is 2.80%. It has an unusual payment schedule. It's made 3 times a year, in June, September and December with the final payment double the normal "quarterly" amount. Last year, it was 44 cents, 44 cents, and 88 cents.

More numbers: Trailing P/E is 19.16 while Forward P/E is 16.17. Price to sales ratio is 4.50. Price to book is 5.16. Book value is $12.05. For the last 12 months, Operating margin was 29.25% and Profit margin was 23.59%. Return on equity was 29.24% and Return on assets was 11.61%. Total cash is $13.26 billion for $5.71 a share. Total debt is $13.39 billion. Debt to equity is 47.99%. Current ratio is 1.34. There are 2.32 billion shares outstanding with a Float of 2.01 billion. Insiders own almost 5% of the stock. Institutions have 63.50% of the Float.

This is a rock solid stock with decent growth potential. There's no catalyst waiting to skyrocket it to new highs, but there isn't much that can hurt it. Unless the health concerns become more vocal or Warren Buffett decides to dump it, investors can buy this stock and rest easy.

- Company Web site: www.coca-cola.com

- Ted Allrich