For five years now, investors and savers have faced the lowest interest rates since the 1950s. Wall Street pundits breathlessly gush over the fact that small and large investors are reaching for yield, and the damage that it can ultimately cause. While there certainly is a degree of truth in that, the increase in rates should be very slow and gradual over the next three to five years, and cautious income investors should be able to manage the increases.

A new research report from UBS takes a broad look across all asset classes the analysts cover, looking for the best current income ideas. We highlight and update some their top picks by asset class.

Stocks

Dominion Resources Inc. (NYSE: D) is on the UBS Dividend Rulers stock list and has been on fire as investor demand for utilities has grown this year. The company raised its dividend by 7% in January and the UBS team thinks that the company’s natural gas infrastructure should drive solid earnings and dividend growth. Investors receive a 3.4% dividend. UBS has a $71 price target for the stock. The Thomson/First Call consensus price target is pegged at $71.30. Dominion closed Monday at $70.04 a share.

Intel Corp. (NASDAQ: INTC) is a Neutral-rated name from UBS, and like Dominion it is on their Dividend Ruler stock list. The stock has been caught in a ratings tug-of-war on Wall Street, but many firms believe the Silicon Valley giant is poised to breakout of their multiyear slump, especially after lifting earnings expectations for the rest of the year.

A new commitment to smartphone and mobile applications, combined with a possible resurgence of PC growth this year may make Intel one of the best large-cap value stocks to buy. Intel trades at a very low 13.5 times forward earnings. Investors are paid a solid 3.4% dividend. UBS has a $32 price target, while the consensus target is $29.64. Intel closed Monday at $30.23.

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Preferred Shares

Top preferred securities make an excellent addition to income portfolios. Its trades on listed exchanges and can be easily bought and sold. The securities have solid credit quality and can appreciate in price. One note, many are callable, usually at the $25 level and the symbols can vary. It is important to check with your financial advisor or brokerage firm for details on these securities.

Citigroup Preferred J is a solid preferred to buy. The security has a 7.125% coupon and is trading above its $25 issue price. At that level the yield to call (which is $25) is posted at a 6.52%. That figure is paid quarterly to investors. It is a fixed to float security, which means at one point the yield will be based on floating scale, typically a LIBOR plus figure. This makes good sense in an environment where rates can go higher. Citi Preferred J closed Wednesday at $27.34.

Morgan Stanley Preferred E is another quality preferred backed by a major Wall Street firm. The Morgan Stanley security is also a 7.125% coupon, fixed to floating security. It was also trading above the $25 issue price for a yield to call of 6.35%. The dividend is paid on a quarterly basis. Morgan Stanley Preferred E closed at $28.06.

Real Estate Investment Trusts

Real estate investment trusts (REITs) may be an outstanding avenue for more conservative income investors. The UBS analysts stand strong by their belief that commercial real estate should generally be a beneficiary of improving economic activity. They have highlighted three top names to buy. REIT distributions may contain return of principal.

W.P. Carey Inc. (NYSE: WPC) is rated Outperform and is on the UBS High Conviction call list. The UBS team like the combination of asset management and property ownership with significant recurring revenues. The company’s merger with Corporate Property Associates (CPA) 16 should be very accretive to funds from operations and dividends. Investors are paid an excellent 5.5% dividend. The UBS price target for the stock is $80, and the consensus is at $70.75. The stock closed Monday at $65.32.

Home Properties Inc. (NYSE: HME) is another top REIT name rated Outperform at UBS. The stock trades at significant multiple and cap rate discounts to the multifamily group despite having among the highest dividend yield, and the lowest tenant turnover in a group of their peers. The stock pays investors a 4.6% distribution. The UBS price target is $69.75, and the consensus is at $63.06. The stock closed Monday $62.78.

Two Harbors Investment Corp. (NYSE: TWO) is one of the mortgage REITs that were hit hard when interest rates started to rise this time last year. The UBS analysts think that the company’s diversified portfolio and move to a more defensive posture on rates makes it a top real estate name to buy in 2014 and beyond. The UBS price target for the stock, which is rated Outperform, is $11, and the consensus was not posted. Investors are paid an outstanding 10% dividend. Two Harbors closed Monday at $10.50.

Alternative Asset Managers

Apollo Global Management LLC (NYSE: APO) is rated Outperform at UBS. The company declared a monster $1.08 per share dividend as capital was returned to shareholders following the sale of some high-profile assets. Based on the higher quarterly distribution, shareholders are paid an outstanding 12.7% dividend, which could be higher depending distributions that rest of the year. The UBS price target is posted at $33, and the consensus is at $34.11. Apollo closed Monday at $27.66.

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Closed End Funds

Nuveen Tax Advantaged Total Return Strategy Fund (NYSE: JTA) is rated Buy at UBS and they feel it is a great way to play equities as well as the senior loan market. Trading way below the stated NAV of $19.92 shareholders own the fund at a very nice discount. Investor are paid a very solid 6.88% dividend. In 2013, 45% of all dividends paid were QID, which lowers the tax rate to investors. No UBS or consensus price target was posted. The fund closed Monday at $14.72.

Master Limited Partnerships

Regency Energy Partners L.P. (NYSE: RGP) is a midstream operator of natural gas pipelines, gathering systems and processing facilities. Regency’s midstream services are spread out across the country, and are focused on some of the highest-producing natural gas regions of the country, including the Marcellus and Haynesville Shales. Investors are paid a very nice 6.3% distribution. The UBS price target is $32, and the consensus is at $31. Regency closed Monday at $30.91. It is important to remember that master limited partnership (MLP) distribution can include return of principal.

Rose Rock Midstream L.P. (NYSE: RRMS) is a top pick at UBS as the analysts believe that the company offers one of the best combinations of yield growth with a relatively attractive valuation. Given the big run in the MLP space over the past three years, that makes good sense. Shareholders are paid a 4% distribution. The UBS price target is $53, while the consensus is posted at $49.09. The stock closed Monday at $49.67.

The UBS team has found higher yielding securities with which investors can at least sleep better at night. While none replace the 5% certificate of deposit, they all have consistently paid solid dividends and offer investors a yield break until rates start to move higher either next year, or at the very latest, in 2016.

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