"The fund follows a managed distribution policy, which virtually guarantees investors receive a fixed monthly income. The downside of a managed distribution policy is that management may chip away at a fund's asset base to meet its monthly payments if its interest income and capital gains do not provide enough distributable income.

"That's why I zeroed in on a fund that has increased its asset base while still providing a set monthly income to shareholders. The distribution represents 10% of the fund's net asset value. The fund's net asset value has grown almost 7% in the past year, which bodes well for future dividend hikes.

"Over the past three years, the fund has averaged healthy annual returns of 13%. Under the expert hand of seasoned portfolio manager Dr. Martin Zweig, its diversified stock/bond portfolio has continued to add value whether interest rates were rising or falling. I expect the fund's diverse portfolio of stocks and bonds to continue to generate secure distributions as it has every month since 1988."

To see Carla's favorite speculative idea for 2007, click here.