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.

Retail Energy Operations markets natural gas and related services under the Georgia Natural Gas name to retail customers on an unregulated basis primarily in Georgia, Ohio, and Florida, as well as to commercial and industrial customers principally in Alabama, Tennessee, North Carolina, South Carolina, and Georgia.

Wholesale Services is in asset management and optimization, storage, transportation, production, and peaking services, as well as wholesale marketing. It offers services to retail and wholesale marketers, and utility and industrial customers. This segment also provides natural gas supply and services to commercial and governmental customers primarily in Kentucky, Ohio, Pennsylvania, Virginia, and West Virginia.

Energy Investments acquires, develops, and operates salt-dome and other storage assets in the Gulf Coast region of the United States. As of June 30, 2011, the company served approximately 2.3 million end-use customers. AGL Resources Inc. was founded in 1856 and is based in Atlanta, Georgia.

AGL gives a better than average yield compared to other utilities. That's what kept its stock price very steady over the last 3 years, trading in a rather tight range of $34 to $43. Income investors will like the payout here as well as the comfort of a non-volatile holding. And as good as the previous few years have been, the outlook is even brighter.

That's because the company is about to close on its purchase of Nicor, an energy and shipping company. It only needs approval from the Illinois Commerce Commission which has put the matter on its agenda for discussion and possible vote with a mandatory deadline of December 16 for final judgment. Analysts see no reason why this deal won't be approved and expect closing by December 31.

Nicor brings several benefits to AGL. It has a considerable presence in the Midwest and the Caribbean and offers epxansion possibilities for AGL Resources in the Chicago area and the Bahamas. Integration of the new purchase will have costs and could negatively affect earnings this year and next.

Earnings will dip slightly this year, going to $2.91 after registering $3.05 last year. The causes: lower prices for natural gas and some problems at the company's Marcellus Shale project (in the northeast). It had higher transportation prices to move the gas out of the region and lower selling prices. A new pipeline agreement will fix this problem, at least for the transportation part of it. Expect better results in 2012 with $3.12 per share predicted. That's plenty of profit to pay the $1.80 dividend. The dividend increased every year since 2002 when it was $1.08. Most likely it will get hiked again next year.

Nicor has new opportunities in the Midwest, thanks to Nicor. Furthermore, the company has had several favorable regulatory rate rulings, especially for its large division Atlanta Gas Light. Combined, they represent higher revenues and more customers which ultimately translates into three positive benefits to the company and shareholders: more revenues, more profits, and higher dividends.

Essential Numbers:
- Market Cap: $3.15 billion
- Trailing P/E: 15.5
- Forward P/E: 12.8
- Price to sales: 1.42
- Price to book: 1.69
- Operating margin: 20.74%
- Profit margin: 9.17%
- Return on equity: 11.85%
- Return on assets: 4.0%
- Revenues (last 12 months): $2.21 billion
- Total cash: $165 million
- Cash per share: $2.10
- Total debt: $2.7 billion
- Total debt to equity: 144%
- Current ratio: 1.58
- Book value per share: $23.68
- Beta: .51
- 52 week change: 13.18%
- Shares Outstanding: 78.55 million
- Float: 78.15 million
- Insiders own: .58%
- Institutions own: 62.8%
- Dividend: $1.80
- Yield: 4.5%

Income investors should like this stock. It has a solid dividend, a steady stock price, and a promising future. The only concern is the price of natural gas. That's one thing the company can't control, and it's the one product that the whole enterprise revolves around.