We don't expect home runs from the stocks we recommend in our yearly yieldfest (see Where to Find the Best Yields, published in the August 2006 issue). We're content if you just collect the fat payouts and reap a bit of price appreciation. So it's gratifying -- and, to be truthful, a bit surprising -- to report on the marvelous performance of last year's batch.
Start with tanker stocks. Genco Shipping and Trading returned 152% over the past year to June 11, according to Morningstar, while three other fleets -- Seaspan, Double Hull Tankers and Arlington Tankers -- made 53%, 32% and 36% (Standard & Poor's 500-stock index returned 21%). Until world trade slows, shippers should continue to grow and boost their dividends. The stocks' current yields are all down to about 8%, but you should continue to hold.
Business-development firms American Capital Strategies, MCG Capital and Allied Capital added 46%, 21% and 15%, respectively, on strong performance by their portfolio holdings. Among traditional stocks, Verizon returned 49%, Bristol-Myers 23% and U.S. Bancorp 13%. First Industrial Realty, a real estate trust that owns warehouses and factories, returned 20%.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The recommended energy-royalty trusts disappointed, roughly breaking even. Falling natural-gas prices and new Canadian tax rules hurt. But the trusts have been strong the past three months, and if energy prices stay high, they should produce good returns. Hang on to them.
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
Embracing Generative AI for Financial SuccessGenerative AI has the potential to reshape how we approach learning about and managing our personal finances.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are SayingFederal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
Fed Cuts Rates Again: What the Experts Are Saying
Federal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole SpeechFed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
-
Stock Market Today: Stocks Drop Ahead of Powell's Jackson Hole SpeechSentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.
