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.

March 29, 2010 - Alliant Energy (LNT-NYSE) operates in the electric and gas utility businesses in Iowa and Southern Minnesota, Wisconsin and Illinois. The company, through its subsidiary, Interstate Power and Light Company, engages in the generation and distribution of electric energy and the distribution and transportation of natural gas. As of December 31, 2009, it supplied electric and gas service to approximately 525,334 and 233,841 retail customers.

In addition, Alliant Energy Corporation has investments in environmental consulting, and engineering and renewable energy services businesses. It also engages in transportation which includes a short-line railway for the provision of freight services between Cedar Rapids and Iowa City in Iowa; barge terminal and hauling services on the Mississippi River; and other transfer and storage services. The company was founded in 1917 and is based in Madison, Wisconsin.

2009 was a downer for LNT. The company saw earnings deflate to $1.96, after reporting $2.54 in 2008 and $2.69 in 2007. Revenues for '09 were down about 7% to $3.433 billion. Not only was the economy slow, lowering demand for electricity, but temperatures were a little milder which meant lower usage as well.

But 2010 should show a reversal of fortune. The economy is starting to heal and that should increase usage of gas and electric services. Furthermore, temperatures in the mid-west states have been colder this year than last. New retail electric rates should go into effect this year. Both IPL and WPL have filed or will file for rate increases in Iowa, Wisconsin and Minnesota by the second quarter of this year. A new project, Whispering Willow East Wind, started in late 2009 and should boost earnings this year and beyond.

The company has been good to its shareholder, in terms of the dividend. It was raised again in February to $1.58 a share, giving a yield of 4.8%. The last dividend payment date was February 11. Ex-dividend date was January 27. The company raised the dividend every year for the last 8 years, starting with $1.00 in 2003 (after cutting it from $2.00 in 2002).

More numbers: Trailing P/E is 16 but Forward P/E is 11.7. Price to sales ratio is 1.07. Price to book ratio is 1.32. Book value is $25.05. Operating margin for the last 12 months was 11.22% while Profit margin was 3.23%. Return on equity was 3.96%. Total cash is $175.03 million which is $1.58 per share. Total debt is 2.76 billion. Current ratio is 1.28. Beta is a very mild .57. There are 110.67 million shares outstanding. Institutions have 55.2% of them. Value Line rates the company A for Financial Strength.

Conservative and Income investors should have interest in this stock. While the price went down with the general market in 2008 and early 2009, it has climbed steadily since the lows of March last year. With good earnings prospects returning (subject to rate increases), the stock price should be able to continue its upward trajectory. And the dividend will console investors if it takes a little longer than they would like.

- Company Web site: www.alliantenergy.com

- Ted Allrich