Income Gushers


Income Gushers

Our high-yield selections delivered returns as advertised.

In "Pump Up Your Yields" (July 2005), we suggested 19 investments that would generate superior income. Most of our picks did well, some extraordinarily so.

Oil-and-gas royalty trusts led the way. Enerplus Resources surged 59% to May 15; PrimeWest Energy Trust added 26% and San Juan Basin Royalty Trust rose 6%. Those gains were on top of the $3 to $4 a share of distributions by each trust. (Over the same period, Standard Poor's 500-stock index gained 13% and the Lehman Aggregate Bond index broke even.)

Among three bank stocks, JPMorgan Chase rose 30%; AmSouth Bank, 9%; and Bank of America, 9%. Shares of two closed-end income funds -- Eaton Vance Enhanced Equity Income II and NFJ Dividend, Interest Premium Strategy -- barely budged, but each produced a yield of about 9%. Finally, our riskiest debt investment, T. Rowe Price Emerging Markets Bond fund, returned 15%, outpacing 90% of its peers.