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 1, 2010 - Becton, Dickinson & Co. (BDX-NYSE) a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company's BD Medical segment produces medical devices, which are used in healthcare settings. This segment's product line includes needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes, pen needles, and other drugs used in the treatment of diabetes; prefillable drug delivery devices; surgical blades/scalpels and regional anesthesia needles and trays; critical care monitoring devices; ophthalmic surgical instruments; and sharps disposal containers.

Its BD Biosciences segment produces research and clinical tools that facilitate the study of cells and their components. Its product line comprises fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life sciences research; cell imaging systems; laboratory products for tissue culture and fluid handling; diagnostic assays; and cell culture media supplements for biopharmaceutical manufacturing.

Becton serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public. The company was founded in 1897 and is based in Franklin Lakes, New Jersey.

If you look at a price chart of BDX between 2002 and 2008, it's a solid, steady progression of ever higher prices. Then, at the end of 2008, the stock faltered, continued lower until the early part of 2009, and traded in a narrow range of $60 to $70 for most of the year. Now it's broken out and heading higher. Can it keep going, recapture the old high of $93.20, hit in early 2008? Here's what I discovered.

Earnings continue to grow. They were $3.84 in 2007 (they've been higher every year since 1994 when they were 75 cents a share), then $4.46, followed by $4.95. For the last 5 years, they've averaged an increase of 14.45% annually. This year, 14 analysts estimate earnings will be $5.13 (fiscal year ends in September). Next year, they see $5.61. For the next 5 years, average annual improvement should be 10.76%. Clearly, growth in earnings is slowing, but in a sluggish economy, finding stocks with better numbers every year is difficult.

Revenues are jumping. In the first quarter of the year, they were up by 12% to $1.9 billion while earnings rose by 4%. Without currency adjustments, sales would have been up 9% and earnings up 11%. It was the Medical group that showed best results, seeing increased orders for surgical and pharmaceutical systems products with flu related products leading the way. The Diagnostic division also had double digit sales gains with safety-engineered devices and infectious disease testing systems best sellers. The third group, Biosciences, reported flat revenues due to soft demand for clinical and research instruments, victims of a soft global economy.

Looking ahead, there's good reason to believe solid earnings will continue, especially if the global economy gains traction and spending for clinical and research instruments improves. That's the Biosciences division's sweet spots. The other two groups, Medical and Diagnostics will most likely see sales gains no matter what the economy does, as they've already demonstrated last year.

Part of the BDX story is the dividend. For 37 straight years, the board of directors raised it. This year, it will improve by 16 cents to $1.48 a share. That's 12% higher than last year. The ex-dividend date is March 8 and Pay date is March 30. The dividend takes only 27% of earnings to pay. Another part of the story: a stock repurchase program. Recently the board approved another 10 million shares be bought back. That's on top of the 7 million already scheduled for purchase from a previous authorization. Ther are 235.7 million shares outstanding.

More numbers: Trailing P/E is 15.65 while Forward P/E is 14.04. Price to sales is 2.49 and Price to book is 3.49. Book value is $22.32. Operating margin for the last 12 months was 23.51% while Profit margin was 16.79%. Return on Equity was 24.33%. Return on assets was 12.91%. Total cash is $1.46 billion or $6.19 a share. Total debt is $1.69 billion or about 22% of capital. Institutions own 81% of the stock. Value Line gives the company an A++ for Financial Strength.

There's a lot to like at Becton, Dickinson. Investors put it in the dog house for about a year, but now it's coming back. Valuations may seem a bit high in certain ratios, but paying a premium for an extraordinary company, especially one with a great track record for earnings and dividends, is the price investors are willing to pay. Look deeper into this one if you're conservative and looking for a stock that's delivered the goods for many years.

- Company Web site: www.bd.com

- Ted Allrich