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.

Southern had a good winter. It was cold, colder than average. Peak demand was even greater than summer peak demand, a most unusual occurrence. It bodes well for 2010's earnings. Analysts see the year finishing with $2.39, above the $2.32 made in 2009 (and $2.25 in 2008). Next year, consensus esimate from 21 analysts is for $2.52. Second quarter earnings are due out in July and 11 analysts forecast 58 cents a share, a little below the 60 cents of last year's second. For the third quarter, expect 98 cents, about even with the 99 cents of last year's third.

Usually higher earnings come from higher sales. That's certainly the case with SO. Last year's total was $15.74 billion. This year, analysts foresee total revenues at $16.86, then for 2011, $17.86 billion. Of course, everything depends on the weather. A very hot summer will move both revenues and earnings higher. Add another very cold winter, and they grow even more. Conversely, mild weather decreases both.

Income investors will gladly note that the dividend was just raised, up 4% or 7 cents a share, putting the annual payout at $1.82, giving a yield of 5.70%. That payout is 70% of earnings about where the payout ratio has been for several years. Since 2000, the range has been between 69% and 85% with the latter only happening one year. Most of the time, the range was 70% to 75%.

Meanwhile in Georgia, steps are being taken to build a nuclear facility. A site has been chosen and some beginning preparations are in motion. The company still needs a license from the Nuclear Regulatory Commission, but that is expected by next year. Some of the funding for the $4.5 billion project will come from a loan from the U.S. Department of Energy which has made a conditional commitment for loan guarantees of $3.4 billion. Look for this plant to generate power somewhere in 2016 or 2017. The company is also requesting a rate increase for its Georgia Power unit which will take effect next year. Just how much that will be is unknown.

More numbers: Market cap is $27 billion. Trailing P/E is 13.13 while the Forward P/E is 13. Price to sales ratio is 1.67. Price to book is 1.78. Book value is $18.43. Operating margin was 22.79% for the last 12 months while the Profit margin was 12.39%. Return on equity was 14.14% and the Return on assets was 4.53%. Total cash is $344.05 million for $ .42 a share. Total debt is $20.11 billion. Current ratio is .95. Beta is an extremely low .39. In the last 52 weeks, the stock has moved up 14.7%. The range for the last 52 weeks was $28.60 to $35.45. There are 824.54 million shares outstanding. Institutions own 44.2% of them.

Income investors should like this stock for several reasons, beginning with the above average dividend. It's about 1% higher than the average utility dividend. Another reason: dividends have increased every year since 2001. Also, the company has an A rating from Value Line for Financial Strength. And finally, the Beta is very low which means the stock doesn't move strongly, up or down, compared to the rest of the market's volatility.

- Company Web site: www.southerncompany.com