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.

The Daimler Trucks segment offers trucks under the brand names of Mercedes-Benz, Freightliner, Western Star, Fuso, and Thomas Built Buses. The Mercedes-Benz Vans segment provides vans under the brand names Mercedes-Benz and Freightliner. The Daimler Buses segment offers city and intercity buses, coaches, and bus chassis under the Mercedes-Benz, Setra, and Orion brand names.

The Daimler Financial Services segment provides financing and leasing packages for customers and dealers. It also offers insurance, fleet-management, investment products, and credit cards. In addition, it operates Mercedes-Benz Bank that provides vehicle-related financing and leasing products, as well as call money accounts, fixed interest rate products, savings plans, investment funds, certificates, and retirement provision products.

The company also sells related spare parts and accessories; and engages in car renting business in India that provides its cars for hire. Daimler AG was founded in 1883 and is headquartered in Stuttgart, Germany.

A couple of interesting things about Daimler. It's credited as having built the first practical car, ever, back in 1886. Karl Benz was the German mechanical engineer who designed and built it. The second thing to note is that the stock trades in the Pink sheets or the Over The Counter market. That means market makers will buy or sell the stock but not on an exchange. You won't notice the difference when you go to buy or sell it but it usually means the spreads (the difference between the bid and ask prices) are wider than on stocks that do trade on an exchange. Your broker will handle the details so don't worry about executing a trade, just be aware that there may be a wide spread between the bid and ask and that limit orders are the best way to buy the stock.

Having noted those items, there are plenty of other, positive factors to consider about Daimler. The first is its healthy dividend of 6%. It's paid once a year, usually in April. There was none in 2010. This year, it was $2.68 a share. In 2007, it was $1.58, then $2.51, followed by 59 cents in '09. It's fluid. If the company stays on track to make the earnings analysts expect, the dividend should increase in 2012. But nothing is guaranteed.

Those earnings are expected to be $7.50 this year (up from $5.34 last year). In 2012, look for $8.50. Over the last 5 years, sales were down, on average, 7% a year. Earnings were down, on average, 2.5% a year. For the next 5, look for sales to grow annually, on average, by 7.5%, and earnings to grow, on average, 20% a year. The road looks pretty smooth ahead for Daimler.

That's because it's selling lots of cars, and China loves them. During the third quarter, revenues were up 11% compared to last year's third, with a total of 525,500 cars and commercial vehicles finding new owners. Mercedes-Benz alone set a new third-quarter record by selling 337,200 vehicles. Right along with those records came higher expenses in the form of material prices and model update costs.

Sales were strong globally in regions such as Europe, Latin America and the North America Free Trade Asssociation. Especially noteworthy were trucks, up 22% to 115,600. Germany and the U.S. boosted sales by 18% in the Mercedes-Benz Vans group. Profits were still strong, to $1.81 vs $1.62 in 2010's third period, even with the noted higher costs.

Management has plenty of optimism for the fourth quarter. It re-affirmed its 2011 guidance from earlier this year, looking for much better numbers than the 1.9 million vehicles sold last year with every group seeing higher results. Mercedes-Benz has strong demand for its C-Class and M-Class cars as well as its SUV's. It just introduced its B-Class this month with the first of 5 new automobiles for the compact-car market. India and China are still developing areas where demand is particularly high. Other new models seeing solid reception are the Vito and Viano offered by Mercedes-Benz Vans.

Essential Numbers:
- Market Cap: $48 billion
- Forward P/E: 6
- Price to sales ratio: .33
- Price to book: .89
- Operating margin: 7.32%
- Profit margin: 4.82%
- Return on equity: 14.26%
- Return on assets: 3.44%
- Revenues for last 12 months: $138.26 billion
- Total cash: $5.35 billion
- Cash per share: $5.03
- Total debt: $76.72 billion
- Total debt/equity: 144.42%
- Current ratio: 1.17
- Book value per share: $47.70
- 52 week change: - 38.16%
- 52 week range: $38.89 - $79.50
- Total shares Outstanding: 1.06 billion

The company hasn't announced its dividend for 2012. That won't be known for a while. But based on past payouts, it should be higher as earnings improved notably this year. The next year may be even more because earnings are projected to continue to improve. Also, the stock isn't that far off its 52 week low. There could be a nice capital gain for Income investors if the global economy continues to strengthen.