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.

May 11, 2009 -  Unilever PLC (UL-NYSE) together with its subsidiaries, engages in the production and supply of fast moving consumer goods in food, home, and personal care product categories in Western Europe, the Americas, Asia, Africa, and Central and Eastern Europe.

It also provides ice creams under the international Heart brand, including Cornetto, Magnum, Carte d'Or and Solero, Wall's, Kibon, Algida, Ola, Ben & Jerry's, Breyers, Klondike, and Popsicle brands; tea-based beverages under Lipton, Brooke Bond, and PG Tips brands; weight management products under the Slim Fast brand; nutritionally enhanced products under Annapurna and AdeS brands; and personal care products, including deodorants, skincare, and hair care products under Dove, Lux, Rexona, Sunsilk, Axe/Lynx, Pond's, Suave, Clear, Lifebuoy, and Vaseline brands, as well as oral care products under Signal and Close Up brands.

But wait. There's more. In addition, Unilever provides laundry products, such as tablets, powders, liquids,and soap bars under Omo, Surf, Comfort, Radiant, and Skip brands; and household care products, including surface cleaners and bleach under Cif, Domestos, and Sun/Sunlight brands.

Additionally, the company offers solutions for professional chefs and caterers. It sells its products through sales force, independent brokers, agents, and distributors to chain, wholesale, co-operative, and independent grocery accounts; food service distributors and institutions; and a network of distribution centers, satellite warehouses, company-operated and public storage facilities, and depots.

The company, formerly known as Lever Brothers Limited, was founded in 1885 and is based in London, the United Kingdom. Unilever PLC is a subsidiary of The Unilever Group.

You know this company; you just didn't know it offered all these products. With such a wide diversity, the company can almost stock all the shelves in any house. That's the good news. The bad news is that most consumers are cutting back where ever they can, including cleaning products and many others that Unilever offers.

It's showing up in the sales numbers. Revenues increased to $54.815 billion in 2007, up from $49.711 billion in 2006. Last year, they were up another $4.6 billion to $59.488 billion. This year, however, analysts see slowing, predict $51.72 billion, then $53.21 billion next year.

On the earnings side, there's a wide range of opinion (3 analysts cover the stock), going from $1.21 to $1.97 for 2009 with the consensus at $1.61. That's in sharp contrast to $2.63 last year. For 2010, consensus is for $1.89 with a range of $1.74 to $2.12. Of course, how the global economy fares will influence this number greatly. The sooner consumers feel they can spend again, the sooner UL will recover.

So why would conservative investors consider a stock that has drifted lower for the last year, one that hit an all-time high of $38.30 in the latter part of 2007, only to head lower for the next year? Because investors will receive a dividend of $1.16 while they wait, giving them a yield of 5.3%. Plus the balance sheet is exceptionally strong (Value Line gives the company A++ for its financial strength). Finally, because Unilever offers products that will fly off the shelves when the economy recovers.

Management sees the current crisis as an opportunity to gain market share through stronger brand development and innovation, including new product introductions spanning the entire price spectrum. Of course, lower cost items tend to have lower profit margins. But the CEO recently announced that he believes volume growth is obtainable without pressuring margins. Time will tell. Look for higher R&D costs and advertising/marketing expense as the company implements new programs and offers new products. In 2008, advertising was 12% of sales, R&D, 2%.

Half of all revenues come from emerging market nations. That's where growth is most likely, especially as the company increases marketing for greater brand awareness and offers more products with different price points.

While earnings and sales will slow this year, analysts see growth for both in the next 5 with sales increasing by 5% a year, on average, and earnings improving by 8% a year, on average.

More numbers: Forward P/E is 11.8. Price to sales is 1.1. Price to Book is 3.5. Return on Equity for the last 12 months was 39.4%. There's $3.76 billion in cash.

Check out Unilever if you think the global economy is about to improve. This is a company that will see consumers come back to higher quality, higher priced goods when they feel more secure in their jobs and the future. In the meantime, you can collect a decent dividend (paid twice a year) that yields over 5%. But that's only after you've done your homework and decide whether this stock delivers the goods for you.

Company Web site: www.unilever.com

- Ted Allrich