MLPs

The big attraction of master limited partnerships is tax-favored dividends. MLPs can be generous -- now around 6% to 10% -- because they don't have to pay federal income taxes if they pay out most of their cash flow to shareholders. But, alas, they're not for everyone.

Interest rates are hovering near record lows, so investors looking for higher returns will have to look beyond interest-bearing assets like CDs and money-market funds. If low risk is a priority, consider two interesting options: utilities and oil pipeline partnerships.