Where to Find the Best Yields

From tankers to trusts, a host of ideas for generating great current returns.

What's reassuring about the quest for high yield is that something always works. Rising inflation and rising interest rates threaten to clip the value of your Treasury bonds? Don't sweat it. Plenty of investments yield 8% -- far more than the current 5% yield on Treasuries -- and many of them will actually benefit from a peppy economy.

Take Allied Capital, which chief executive William Walton calls a "publicly traded private-equity company" (try saying that six times fast). He means that Allied lends money to or takes ownership stakes in midsize, privately owned U.S. businesses (or does both). Allied backs companies -- 126 at present -- that do everything from make mousetraps to run muffler franchises.

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Jeffrey R. Kosnett
Senior Editor, Kiplinger's Personal Finance
Kosnett is the editor of Kiplinger's Investing for Income and writes the "Cash in Hand" column for Kiplinger's Personal Finance. He is an income-investing expert who covers bonds, real estate investment trusts, oil and gas income deals, dividend stocks and anything else that pays interest and dividends. He joined Kiplinger in 1981 after six years in newspapers, including the Baltimore Sun. He is a 1976 journalism graduate from the Medill School at Northwestern University and completed an executive program at the Carnegie-Mellon University business school in 1978.