Income is a big part of investors' returns. Stocks, mutual funds and fixed income ideas in this column are featured because they are relatively solid in their ability to pay dividends or interest. We're giving income investors a resource to start their research for investments that give better yields with lower risk.

Further, AllianceBernstein Holding L.P. offers research services to institutional investors through research, portfolio analysis, and brokerage-related services; and equity capital markets services to issuers of publicly-traded securities.

It also provides distribution, shareholder servicing, and administrative services to its sponsored mutual funds. AllianceBernstein Corporation serves as the general partner of the company. AllianceBernstein Holding L.P. was founded in 1987 and is based in New York, New York. AllianceBernstein Holding L.P. operates as a subsidiary of AXA Financial.

Alliance's dividend is a fluid one. It moves with earnings. For the last 7 quarters it was: 62 cents, 46 cents, 31 cents, 12 cents, 42 cents, 34 cents, and 26 cents respectively. So getting a handle on the annual yield is impossible. But if you assume (which you can't) that the 26 cents holds for a year, then the yield is 7.9%. Over the last 4 years, annual payouts were $4.75, $3.45, $1.44, and $1.51. They adjust for final results each quarter. So income investors may have a much better return over the next 4 quarters than 26 cents every 3 months. Or they could receive much less. It all depends on the stock and bond markets.

AB is down substantially since its high of $35 twenty months ago. It's approaching the low of $10.10 hit in March of 2009 when the world seemed to be ending. Then it rallied significantly, along with the market, more than tripling before losing ground again. Will history repeat?

It all depends on the stock and bond markets. Get used to that. Because AB manages money for people and when the market goes down, people not only don't invest more, they take money out of the market, put it in cash and wait for better times. So stock market performance lowers the amount of assets under management, thus lowering the asset management fees AB collects, plus it raises fears in clients who then take their money away, lowering management fees even more.

Third quarter results show exactly that process. Earnings were 26 cents a share, due to lower base and performance fees. Assets left the company to the tune of $15.4 billion in the period, both insitutional and individual clients. And that was less than the second quarter.

Analysts see the year finishing with earnings of 88 cents, well below the $1.32 of last year (this is a consensus estimate from 9 analysts that show a range of negative 60 cents to a high of $1.35....quite a range). Next year, consensus is for $1.21 with a range of $1.07 to $1.39. Hard to figure since it all depends on the stock market's movements.

But AB doesn't have just stock expertise. One of its strongest attributes is fixed income. It's been making a name for itself and adding large institutional clients to its fixed income offerings. Further, costs are getting cut, especially in the information technology area. Also, it's using space more effectively and attaining a higher occupancy rate. Both should help widen margins next year.

Even with a tough market, the company is in solid fiscal shape. There's $1.4 billion in cash. Debt is only 1% of the balance sheet. With low debt and high cash comes plenty of financial flexibility. Acquisitions may come into play to expand its market. But most likely, shareholders will reap the benefits as AB has a history of paying substantial quarterly dividends. (As an aside, because this is a limited partnership, officially the "stock" is called a unit.)

- Essential Numbers:
- Market Cap: $1.32 billion
- Forward P/E: 10.40
- Trailing P/E: 8.71
- Price to sales ratio: 7.63
- Price to book: .77
- Operating margin: 100%
- Profit margin: 83.75%
- Return on equity: 8.5%
- Return on assets: 6.34%
- Revenues last 12 months: $178.04 million
- Book value per share: $16.79
- Beta: 1.66
- 52 week change: -44.72%
- Total shares Outstanding: 105.17 million
- Held by insiders: 1.23%
- Held by insitutions: 33.2%
- Current payout (annualized): $1.04
- Current yield: 7.9%

This one isn't for all income investors. Most like more certitude in their dividends. But if you like to be paid for your risk taking, and you think the stock market is about to move ahead, then AB should be of interest.

- Company Web site: www.alliancebernstein.com