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.

March 2, 2011 - Consolidated Edison, Inc. (ED-NYSE) through its subsidiaries, provides electric, gas, and steam utility services in the United States. It delivers electric service to approximately 3.3 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County, as well as provides steam service to office buildings and apartment houses in parts of Manhattan.

In addition, Consolidated Edison is involved in the sale and related hedging of electricity to wholesale and retail customers; operation of generating plants; participation in other infrastructure projects; and provision of energy-efficiency services, including the design and installation of lighting retrofits, high-efficiency heating, ventilating and air conditioning equipment, and other energy saving technologies to government and commercial customers.

It serves residential, industrial, and large commercial customers. The company was founded in 1884 and is based in New York, New York.

Con Ed. Everyone on the East Coast knows the name. Provides the heat for most apartments, homes and office buildings in New York. And with the current winter, that's a lot of heat. Look for earnings to improve as the weather worsens.

Earnings were down in 2009 as the recession cut into every aspect of the economy, including utility services. Earnings per share were $3.16, below the $3.36 in 2008. Last year, they came back, improving to $3.45. This year, consensus from 13 analysts is for $3.53, then $3.68 for 2012. Not large jumps, but increases. That usually means dividends will rise as well.

Current dividend is $2.40 a year, up from $2.32, $2.34, $2.36, and $2.38 for the last 4 years. Notice that even when earnings dipped, the dividend increased. It takes about 70% of earnings to pay the pay out. The yield is 4.80% at the stock's current level. Average yield for most utilities is 4.4%.

ED will make about $2.1 billion in capital investments this year, most of it going to regulated utilities. To pay for part of it, the company will raise $600 million in long term debt. No new equity is planned to be issued except the $50 to $80 million needed for its dividend re-investment program.

Look for cost cutting to help the bottom line, this year and next. Operating margins should be higher from fewer expenses. Also helping the top and bottom lines is the company's efforts in competitive businesses, ones like renewable energy sources, still a small part of overall revenues but expected to grow.

Essential numbers: Market Cap is $14.49 billion. Trailing P/E is 14.31 while Forward P/E is 13.49. Price to book is 1.31. Book value is $37.93.Operating margin for the last 12 months was 15.91% and Profit margin was 7.45%. Return on equity was 9.13% and Return on assets was 3.79%. Revenues for the last 12 months was $13.32 billion. Total cash is $338 million for $1.16 a share. Total debt is $10.69 billion. Debt to equity is 94.85%. Current ratio is 1.48. Beta is .27. The stock is up 13.20% in the last 52 weeks. There are 291.97 million shares outstanding. Institutions own 41% of the stock.

Income investors will find comfort here. An above average yield with a well established record of increasing the dividend makes it a stock most will like. There's no catalyst that will boost earnings, but there are few exogenous shocks that can dramatically hurt them either. It's a stock that most investors simply buy and hold.