20 Stocks That Yield More Than Treasuries

For the last two years, the phrase “risk-free rate” has been the loudest voice in every portfolio meeting, and dividend investors have felt the sting each time it spoke. The Federal Reserve has held short-term rates at generational highs, and Treasury yields have been pushed up correspondingly.

The highest-yielding U.S. Treasury now yields 4.991%. This risk-free yield surpasses most dividend stocks in the market and rivals even the highest-yielding ones. Why reach for a 4% utility when cash parked in Uncle Sam’s wallet hands you more, with none of the heartburn?

Naturally, almost any equity sporting a fat yield has gone down. But thankfully, this is unlikely to stay the case for too long. Markets now expect at least two rate cuts this year, and history says once the Fed begins to ease, income investors pivot fast.

The same stocks that were shunned for “only” paying 5% suddenly look like bond proxies with big upside. All the following stocks fit the bill.

• Must be headquartered in the United States.
• Not a preferred issue.
• Trailing dividend yield above 5%.
• Forward dividend yield above 5%.
• A dividend payout ratio below 100%, meaning earnings must cover dividends.
• At least one year of dividend increase.
• A market capitalization of over $1 billion.
• Not classified as a shell company, asset manager, or involved in capital markets, which may deem dividends unsustainable.

• Price: $51.14
• Market capitalization: $19.68 billion
• Forward dividend yield: 6.47%
• Dividend payout ratio: 48%
• Years of dividend increase: 22

• Price: $27.24
• Market capitalization: $2.69 billion
• Forward dividend yield: 6.61%
• Dividend payout ratio: 32%
• Years of dividend increase: 4

• Price: $99.22
• Market capitalization: $84.02 billion
• Forward dividend yield: 6.61%
• Dividend payout ratio: 84%
• Years of dividend increase: 16

• Price: $40.84
• Market capitalization: $172.19 billion
• Forward dividend yield: 6.64%
• Dividend payout ratio: 58%
• Years of dividend increase: 19

• Price: $11.16
• Market capitalization: $44.38 billion
• Forward dividend yield: 6.72%
• Dividend payout ratio: 51%
• Years of dividend increase: 1

• Price: $14.71
• Market capitalization: $1.02 billion
• Forward dividend yield: 6.80%
• Dividend payout ratio: 54%
• Years of dividend increase: 1

• Price: $29.32
• Market capitalization: $2.71 billion
• Forward dividend yield: 6.82%
• Dividend payout ratio: 53%
• Years of dividend increase: 1

• Price: $31.35
• Market capitalization: $67.995 billion
• Forward dividend yield: 6.95%
• Dividend payout ratio: 79%
• Years of dividend increase: 27

• Price: $58.02
• Market capitalization: $97.73 billion
• Forward dividend yield: 7.03%
• Dividend payout ratio: 78%
• Years of dividend increase: 55

• Price: $24.47
• Market capitalization: $139.12 billion
• Forward dividend yield: 7.03%
• Dividend payout ratio: 53%
• Years of dividend increase: 15

• Price: $18.40
• Market capitalization: $1.20 billion
• Forward dividend yield: 7.07%
• Dividend payout ratio: 90%
• Years of dividend increase: 1

• Price: $57.80
• Market capitalization: $6.88 billion
• Forward dividend yield: 7.20%
• Dividend payout ratio: 80%
• Years of dividend increase: 3

• Price: $27.00
• Market capitalization: $4.29 billion
• Forward dividend yield: 7.41%
• Dividend payout ratio: 90%
• Years of dividend increase: 2

• Price: $93.18
• Market capitalization: $5.18 billion
• Forward dividend yield: 7.51%
• Dividend payout ratio: 59%
• Years of dividend increase: 1

• Price: $39.95
• Market capitalization: $6.67 billion
• Forward dividend yield: 7.51%
• Dividend payout ratio: 50%
• Years of dividend increase: 1

• Price: $50.80
• Market capitalization: $51.86 billion
• Forward dividend yield: 7.53%
• Dividend payout ratio: 83%
• Years of dividend increase: 12

• Price: $18.91
• Market capitalization: $13.30 billion
• Forward dividend yield: 8.04%
• Dividend payout ratio: 90%
• Years of dividend increase: 4

• Price: $11.94
• Market capitalization: $6.33 billion
• Forward dividend yield: 8.38%
• Dividend payout ratio: 63%
• Years of dividend increase: 1

• Price: $38.88
• Market capitalization: $1.92 billion
• Forward dividend yield: 10.29%
• Dividend payout ratio: 92%
• Years of dividend increase: 4

• Price: $8.02
• Market capitalization: $2.65 billion
• Forward dividend yield: 11.72%
• Dividend payout ratio: 55%
• Years of dividend increase: 1