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 5, 2009 - AT&T Inc. (T-NYSE) provides telecommunications services to consumers and businesses in the United States and internationally. It provides wireless services, including local wireless communications, long-distance, and roaming services with various postpaid and prepaid service plans.

AT&T's wireline services comprise voice services including local and long-distance services, integrated network connections, traditional long distance and international long distance, calling card, 1-800 services, conference calling, and wholesale switched access service, as well as calling features, such as caller id, call waiting, and voicemail. Its wireline data services consist of switched and dedicated transport, Internet access and network integration, and data equipment; high-speed connections comprising private lines, packet, dedicated Internet, and enterprise networking services, as well as products, such as DSL/broadband, dial-up Internet access, and WiFi; businesses voice applications over IP-based networks; and local, interstate, and international wholesale networking capacity to other service providers.

The company's other wireline services include managed Web hosting, application management, security service, integration services, customer premises equipment, outsourcing, directory and operator assistance services, government-related services, and U-verse and satellite video services.

In addition, it publishes Yellow and White Pages directories; sells directory and Internet-based advertising; and provides multi-enterprise collaboration services to businesses. The company, formerly known as SBC Communications, Inc., was founded in1983 and is headquartered in Dallas, Texas.

It also carries a nice dividend of $1.64, giving a yield of 5.6%. And it has a P/E of 12.5, strong earnings, and an A+ rating for Financial Strength. If you're a conservative investor, you're going to want to know more about the big T.

In spite of a bad economy, third quarter sales were healthy, mostly due to gains in the wireless market. Two elements contributed: higher data services demand and Apple's 3G iPhone. While revenues were gaining, they came at a cost. There were large subsidies paid for handsets, necessary to gain new wireless subscribers. That hurt margins in the mobility division. During the third quarter, it's estimated that earnings were lower by 10 cents a share because of the iPhone business.

Competition in the wireline business increases as cable companies offer triple packs (phone, TV and Internet). AT&T offers triple packs as well but previously had a better lock on the phone service as cable companies weren't in that business. But AT&T has a new weapon in this war. It's called U-verse, an IP-based premium TV service. It already has over 1 million subscribers.

For the wireless division, things are brighter. New wireless data applications are coming soon, and the harm from the initial iPhone business will dissipate. Furthermore, AT&T is now the exclusive U.S. provider of Research in Motion's Black-Berry Bold device.

Analysts see earnings for the fourth quarter at 66 cents a share (they'll be released on January 28). That's down from 71 cents a share in the same quarter last year. For the first quarter of 2009, they predict 68 cents a share, down from 74 cents a share in the same quarter this year. For the full year, the average for the 23 analysts following the company is for 2008 earnings to be $2.84, up from $2.76 last year. The average for all analysts for 2009 is $2.89. This is definitely not a growth company, but earnings have increased every year since 2003.

More numbers: Forward P/E is 9.74. Price to Sales for the last 12 months was 1.41. Price to Book is 1.54. Operating Margin for the last year was 19.19% and the Profit Margin was 11%. Return on Equity was a decent 12.16%. The dividend takes 69% of earnings to pay. The Ex-dividend date is January 7, payable on February 1. Total cash is $1.59 billion. Total debt is $76.77 billion. Total Debt to Equity is .682. The Current Ratio is .517. There are 5.89 billion shares outstanding.

Ma Bell has gone through many phases. It was broken into regional bells (Baby bells), then allowed to reassemble. Now it's back as a national phone service, adding TV and other services and products to its offerings. It's cutting costs (recently announced layoffs of 12,000 or about 4% of the workforce will be happening in 2009). It's traditional line of business, the land based phone line, is giving way to a wireless world. If it can evolve fast enough, it has the resources to keep up with any competitor on the planet.

- Company Web site: www.att.com

- Ted Allrich