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.

Boardwalk operates through 3 subsidiaries: Gulf South Pipeline, Texas Gas Transmission, and Gulf Crossing Pipeline Co. LLC. Gulf South Pipeline runs along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. Texas Gas Transmission begins in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, MIssissippi, Tennessee, Kentucky, Indiana and Ohio with smaller lines extending in Illinois. Most of the gas delivered to these customers is used for heating during winter. Gulf Crossing Pipeline originates near Sherman, Texas and proceeds to the Perryvilee, Louisiana area. The market areas are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.

BWP went public in 2005. Its initial distribution was 18 cents a share. In '06, it was $1.56. And it's gone higher every year. This year, it's expected to be $2.12, up a small amount from $2.10 in 2011. While earnings have been a little volatile, the direction of the dividend has been steadfastly higher. And since dividends are paid with cash flow, the company seems to be in good shape to continue the trend. Cash flow per share in 2011 was $2.25, and this year should be $2.45.

There's been a weakness in the gas storage market, and that hurts BWP. Earnings per unit (this is not a stock, but a unit since this is a partnership structure) were down 20% in the last quarter to 36 cents a share. Management is working on less dependence on this market by buying into other areas.

Two other projects are also proceeding and include the Marcellus Shale and Gulf South pipelines. By June or July of this year, the initial part of the 26 mile Marcellus pipeline should be ready. This is a project that has a contract, fee-based, with Southwestern Energy.

Further developments: the company bought the rest of the 80% equity interest in Boardwalk HP Storage Company. It had been a joint venture with Boardwalk Pipelines Holding Corp. It was originally formed to buy Petal Gas Storage and Hattiesburg Gas Storage last year. With complete control of these two new assets, the company now has 7 salt dome caverns that store natural gas in Mississippi with 29 billion cubic feet of capacity. There is additional real estate that could accomodate 6 additional storage caverns. Managemet has announced plans to build one for $35 million and have it operational by the middle of next year.

- Essential Numbers:
- Projected sales growth (per annum) for next 5 years: 9%
- Projected earnings growth (per year): 6%
- Projected cash flow growth (per year): 7%
- Revenues in 2011: $1.139 billion
- Projected revenues for 2012: $1.17 billion
- Debt to equity: 98%
- Market Cap: $5.4 billion
- Total shares outstanding: 198,588,583
- Earnings for 2012 (projected): $1.25
- Earnings for 2013 (projected): $1.45
- Operating margin: 57%
- Profit margin: 21%

Income investors will want to investigate more thoroughly, but this stock is worth their time. There's a strong history of paying higher distributions every year, and solid cash flow to suggest this will continue. Don't expect the price to increase markedly. All the returns will most likely be in the dividend.

- Company Web site: www.boardwalkpipelines.com