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.

December 6, 2010 - McDonald's Corp. (MCD-NYSE) together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald's restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald's Corporation was founded in 1948 and is based in Oak Brook, Illinois.

While sales dipped in 2009, profits didin't. They were $3.98, up from $3.67. This year, look for $4.60 (20 analysts, as a consensus, see that number.) Next year, they estimate earnings will hit $5.02. For the fourth quarter, expect $1.16, up from $1.03 last year in the fourth. For the first quarter of 2011, look for $1.10, above the $1.03 of this year's first (smoothies don't sell as well in the winter months).

Third quarter results show the new momentum the menu is creating. Earnings were $1.29, 12% above last year's third ($1.15). Sales were up 4%; comparable store sales were an impressive 6% higher on a world-wide basis. The fourth quarter should equal or surpass those numbers as the company has the Monopoly promotion playing. And if you haven't been to a McDonald's lately, you can now order smoothies and McCafe frappes as well as salads and burgers with fries. Globally, units are staying open longer and many have been upgraded.

There are three elements that drive McDonald's: its menu, the convenience, and the value. Next year, the value may be a little lower as price hikes are in the works to help offset higher commodity prices. Prices haven't changed since 2009 so consumers will most likely take the new ones in stride. Plus, the economy seems to be regaining its footing which will make those hikes less objectionable as more people go back to work and uncertainties begin to wane.

Management and the board like shareholders. They recently raised the dividend by 11% to 61 cents per quarter. That's $2.44 a year or a yield of 3.1%. Over the last 4 years, annual dividends have been: $1.00, $1.50, $1.63 and $2.05. It takes about 49% of earnings to pay the payout. Ex-dividend date was November 29 and the dividend date will be December 14.

Conservative investors should like this stock. And if they look at the price chart for the last 7 years, they should like it even more. The price has basically gone up, slowly but surely, every year, with a few down drafts like the beginning of 2009 when every stock was swept under by a maelstrom of bad news. But this stock recovered quickly and continued its upward trajectory. Now it's trading at an all-time high with prospects for better earnings as the economy gets stronger.

- Company Web site: www.mcdonalds.com

- Ted Allrich