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.

Further, it offers ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. As of December 31, 2010, the company had approximately 697.4 million tons of coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of Alliance Resource Partners, L.P. The company was founded in 1971 and is based in Tulsa, Oklahoma.

Since late 2008, everything for Alliance has been almost straight up. The stock price: went from $17.40 to $84.10 early this year. Revenues: went from $1.156 billion to $1.610 billion last year. (This year, 8 analysts have a consensus estimate of $1.85 billion, up 14.6%.) Earnings: $2.39 in '08 to $6.68 last year. (10 analysts have a consensus estimate of $7.88 for this year, then see $8.46 in 2012, a new record.) The dividend: from $2.53 to $3.21. This is the kind of stock we all wish we owned. Of course, we can still buy it. But should we?

If you like income, you'll be pleased to hear that management just bumped the dividend to 92 cents a quarter or $3.68 a year. It has a habit of doing that. The partnership increased the payout for more than 10 years straight. With earnings expected to be $7.88, it takes less than half to pay the distribution.

The reason for all the positive news: coal is hot, with the two powerhouse economies in Asia, China and India, leading the demand. Last year they burned almost 250 million tons of the black energy resource. This year, analysts think they'll use another 275 million tons. In the U.S., stockpiles have diminished after reaching almost record levels. Expect further reductions this year and next. As for new demand domestically, it's hard to predict as the U.S. economy is moving ahead, then slowing, and coal demand tracks with the economy.

Production levels are improving. Look for total volume this year of 32 to 33 million tons of coal which is about 30% more than last year. Predictions for 2012 are for volumes to increase another 5% to 10%. And if the economic recovery gains traction, prices should go higher as well. The company has delivery contracts for 70 million to 75 million tons of coal between 2012 and 2014.

Income investors will like this stock. The only caveat is the great unknown: the domestic economic recovery. Even with that uncertainty, since the company has contracts for most of its production for the next 3 years, it should be able to continue or even improve its high dividend.