August 10, 2010 - With tough times, and maybe getting tougher with deflation as a real possibility, investors who think more defensively may see better returns with more conservative stocks, ones with dividends and solid balance sheets. Now isn't the time to be too aggressive. With that in mind, here are 5 stocks that made our column dedicated to Conservative investors.

The Avista Utilities segment engages in the generation, transmission, and distribution of electric energy primarily from hydroelectric and thermal sources. This segment also distributes natural gas to retail customers in parts of eastern Washington, northern Idaho, and parts of northeast and southwest Oregon, as well as engages in wholesale purchase and sale of electricity and natural gas.

As of December 31, 2009, it provided retail electric service to approximately 356,000 customers; and retail natural gas service to approximately 316,000 customers. This segment offers electricity and natural gas to residential, commercial, and industrial customers.

The Advantage IQ segment provides utility expense management solutions to assess and manage utility costs and usage to multi-site companies in North America. It offers invoice processing, auditing and payment services, energy procurement, reporting, and advanced analysis, as well as provides analytical support, reporting, and consulting services. In addition, Avista's other investments and operations include sheet metal fabrication of electronic enclosures, parts, and systems for thecomputer, telecom, renewable energy, and medical industries; real estate investments, primarily commercial office buildings; and investments in venture capital funds and low income housing.
Dividend: $1.00 Yield: 4.7%

- DD: E, I. duPont: operates as a science and technology company worldwide. It has seven segments: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals. The Agriculture & Nutrition segment offers benzene and carbamic acid related intermediates, copper, insect control products, natural gas, soybeans, soy flake, soy lecithin, sulfonamides, corn, and soybean seeds.

The Electronic & Communication segment supplies enabling materials and systems for alternative energy, electronics, flat panel displays, and advanced printing. The Performance Chemicals segment provides a range of industrial and specialty chemical products, which include titanium dioxide, abrasives, fluorochemicals, and fluoropolymers. The Performance Coatings segment primarily offers coatings, such as high performance liquid and powder coatings for the motor vehicle OEMs, the motor vehicle after-market, and general industrial applications, which include coatings for heavy equipment, pipes and appliances and electrical insulation.

The Performance Materials segment provides polymers, elastomers, films, parts, and systems and solutions for the automotive OEMs and associated after-market industries. The Safety & Protection segment offers nonwovens, aramids, and solid surfaces for the construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, and homeland security and safety consulting industries. The Pharmaceuticals segment represents its interest in the collaboration relating to Cozaar/Hyzaaranti hypertensive drugs. DuPont was founded in 1802.
Dividend: $1.64 Yield: 3.90%

- HRL: Hormel Foods: makers of Spam. Produces and markets various meat and food products in the United States and internationally. It offers meat products, including fresh, frozen, cured, smoked, cooked, and canned meat. The company provides perishable meat products, which include fresh meats, sausages, hams, wieners, and bacon; poultry products that comprise JOTS products; and shelf-stable products, including canned luncheon meats, shelf-stable microwaveable entrees, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, and tortilla chips.

It also offers nutritional food products and supplements, sugar and sugar substitutes, creamers, salt and pepper products, sauces and salad dressings, dessert and drink mixes, and industrial gelatin products. In addition, Hormel Foods offers refrigerated, microwaveable, multi-portion potato-/pasta-based side dish products. The company sells through sales personnel, as well as independent brokers and distributors. It was formerly known as George A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. The company was founded in 1891.
Dividend: 84 cents Yield: 2.00%

- TSCO: Tractor Supply Co.: operates retail farm and ranch stores in the United States. Its stores offer a selection of merchandise, including equine, pet, and animal products, such as items required for their health, care, growth, and containment; hardware and seasonal products, including lawn and garden power equipment; truck, towing, and tool products; work/recreational clothing and footwear products; maintenance products for agricultural and rural use; and home decor, candy, snack food, and toy products.

- UTX: United Technologies: provides technology products and services to the building systems and aerospace industries worldwide. The company's Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways. United's Carrier segment provides HVAC and refrigeration solutions, including controls for residential,commercial, industrial, and transportation applications.

The company's UTC Fire & Security segment offers electronic security products, such as intruder alarms, access control systems, and video surveillance systems; and fire safety products, including specialty hazard detection and fixed suppression products, portable fire extinguishers, and other firefighting equipment. It also offers systems integration, installation, maintenance, and inspection services; and monitoring, response, and security personnel services, such as cash-in-transit security.

United's Pratt & Whitney division supplies aircraft engines for the commercial, military, business jet, and general aviation markets. It also manufactures aerospace propulsion systems for the U.S. space shuttle program. The company's Hamilton Sundstrand segment supplies aerospace products, such as power generation, management and distribution systems, flight systems, engine control systems, environmental control systems, fire protection and detection systems, auxiliary power units, and propeller systems; and industrial products, including air compressors, metering pumps, and fluid handling equipment. United's Sikorsky segment manufactures military and commercial helicopters, and aftermarket helicopter and aircraft parts and services. The company also offers installation, retrofit, and aftermarket services, such as spare parts, overhaul and repair,engineering and technical support, and fleet maintenance programs. United was founded in 1934.
Dividend: $1.70 Yield: 2.30%

As with all lists of stocks, dig deeper and determine if these fit your goals and risk parameters. (For more information on each of these, please see our Conservative Investor columns.) These stocks could be decent choices for investors looking for a little more defense in their portfolios.

- Ted Allrich