5 High-Yield Dividend Stocks That Could Beat a 5% Treasury Yield
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The 10-year Treasury yielded 5.1% on November 12, 2026, and that changes the income math. An income investor can now earn a competitive rate from a Treasury without owning a stock or taking on equity risk, so dividend stocks have to compete for that money, and many sell off until their yields catch up. A payout still earns its place when earnings and free cash flow cover it well, when finances can absorb higher borrowing costs, and when the dividend keeps growing. A Treasury coupon never rises. The five picks below meet that standard, and coverage comes ahead of headline yield.
Chevron: Record Cash Flow and Falling Debt Protect the Payout
Chevron (NYSE:CVX | CVX Price Prediction) has the strongest coverage on the list. Third-quarter adjusted EPS came in at $5.28, ahead of the $4.83 estimate, and the $1.78 quarterly dividend used only about 34% of that figure. Free cash flow reached $12.0 billion in the quarter, up 156.9% year over year, on $16.0 billion of operating cash flow. Debt levels tightened in the same quarter: Chevron paid down $3.5 billion of debt, and net debt fell $7.8 billion. Debt-to-equity runs at 0.22, net debt to EBITDA at 0.94, and interest coverage at 13.7x, so higher rates do little to the cost of running this business.
Its payout history keeps climbing. The quarterly payout rose from $1.29 in 2020 to $1.63 in 2024, $1.71 in 2025, and $1.78 for every 2026 payment. The next check goes to holders of record on November 18 and pays on December 10. At $217.21, the $7.12 annualized forward dividend yields 3.28%. The yield is lower than usual because the stock is up 46.48% year to date.
Bull case: Hess synergies are coming ahead of schedule, the Permian and Gulf of America are growing, and U.S. refineries ran a record 1.09 million barrels per day at about 98% utilization. CEO Mike Wirth said, “We delivered strong operational performance and disciplined execution, while continuing to invest to grow energy supply.”
Risk: The payout depends on crude prices staying constructive, and Chevron has geopolitical exposure in Venezuela and the Middle East. Valuation is also full, with a P/E of about 34.
Enterprise Products Partners: 1.9x Coverage on a Nearly 6% Yield
Enterprise Products Partners (NYSE:EPD) produced operational distributable cash flow of $2.3 billion in the third quarter, up 27%, which covered the distribution 1.9 times. The partnership kept $1.1 billion for growth, buybacks, and debt reduction after paying unitholders. Operating cash flow rose 25.7% to $2.19 billion.
The payout grows step by step: $0.515 per unit in early 2024, $0.535 in early 2025, $0.55 in early 2026, and $0.56 now. At $37.52, the $2.24 annualized distribution yields 5.97%, which puts it in high-yield territory just short of the ultra-high-yield line.
Bull case: This partnership has $6.3 billion of growth projects under construction through 2028. Permian processing inlet volumes hit a record 4.6 Bcf/d, and marine terminal volumes rose 28%. The Athena plant and the Houston Ship Channel LPG terminal expansion are due in Q4 2026. Buybacks add support: $112 million was repurchased in the quarter under a $5 billion program.
Risk: Investors own an MLP that issues a K-1, which complicates tax filing. Commodity swings and mark-to-market hedging losses can also hit reported results. The units trade as a pure income vehicle, so another leg higher in Treasury yields could pressure the price even if cash flow holds.
Verizon: Ultra-High-Yield Income Backed by Rising Free Cash Flow
Verizon (NYSE:VZ) is the only ultra-high-yield name here. At $46.65, the $2.83 forward dividend yields 6.07%. Coverage is solid: the $0.7075 quarterly dividend equals about 54% of third-quarter adjusted EPS of $1.31, which beat the $1.27 estimate. Free cash flow rose 13.9% to $7.80 billion while capex fell 15.9%. Management raised 2026 adjusted EPS guidance to $5.04 to $5.06 and expects free cash flow growth to approach 12%. The quarterly payout has risen from $0.405 in late 2006 to $0.7075 today.
Bull case: Verizon added 406,000 postpaid phone subscribers, compared with 44,000 a year earlier. Adjusted EBITDA margin expanded to 40.2% from 37.8%, and a $2 billion-plus AWS AI Connect deal adds a new growth area. CEO Dan Schulman said, “One year into our transformation, Verizon is fundamentally stronger, operationally, financially, and competitively.”
Risk: Verizon is the most rate-sensitive name on the list. It carries $166.2 billion of unsecured debt, and interest expense rose 17.2%. Revenue of $34.31 billion also came in below the $34.85 billion estimate, and wireless ARPA slid 1.9%.
Altria: 61 Raises in 57 Years, and Margins Few Companies Can Match
Altria (NYSE:MO) runs the tightest coverage of the five. The $1.11 quarterly dividend equals about 73% of third-quarter adjusted EPS of $1.52. Dividends paid in the quarter were $1.7 billion, against net income of $2.52 billion. Years of aggressive capital returns have left shareholders’ equity negative at -$2.2 billion, so cash flow is what supports the dividend. That has been enough for the company’s 61st dividend increase in 57 years, a 4.7% raise in August to $4.44 annualized. Management is still aiming for mid-single-digit annual dividend growth through 2028.
At $78.30, the yield is 5.67%, even after a 42.38% gain this year.
Bull case: Its smokeable segment earns a 64.5% adjusted OCI margin. Management raised 2026 adjusted EPS guidance to $5.66 to $5.74, and equity income from ABI nearly doubled to $228 million from $123 million. The board also added $1 billion to the buyback after Altria bought back $400 million of stock in the quarter.
Risk: Industry cigarette volumes are falling about 5%, Altria lost 1.3 points of share, and NJOY ACE is shut out of the U.S. market. Altria also trades as a bond proxy, so rising Treasury yields compete directly with its stock.
AbbVie: Lowest Yield on the List, Fastest Payout Growth
AbbVie (NYSE:ABBV) yields 2.46% at $296.05, the lowest on this list. Dividend growth ensures its spot on the list. The quarterly payout has climbed from $0.40 in 2013 to $1.82, after a roughly 5.2% raise payable February 16, 2027. The third-quarter dividend of $1.73 used about 45% of adjusted EPS of $3.82. Operating margin is 32.8%, net debt to EBITDA is 2.26, and interest coverage is 6.9x.
Bull case: Skyrizi revenue rose 22.7% to $5.78 billion, Rinvoq rose 23.9% to $2.71 billion, and neuroscience climbed 19.4%. Together, they more than offset the Humira decline. Management raised 2026 adjusted EPS guidance to $13.95 to $13.99. CEO Robert A. Michael said, “Given our strong outlook and significant momentum, we are once again increasing AbbVie’s full-year guidance and raising our quarterly dividend.”
Risk: Humira sales fell 31.2%, and drug pricing reform remains a live threat. AbbVie also carries more leverage than Chevron, which matters more when rates stay high. On valuation, the stock trades at a GAAP P/E of about 123 and 29.2 times free cash flow.
Five Payouts Built to Compete With Treasuries
A 5.1% Treasury sets a high bar, and each of these names clears it in its own way. Chevron and Enterprise have the richest cash reserves. Verizon and Altria offer the biggest current checks from proven cash machines, and AbbVie offers payout growth that a fixed coupon cannot. Watch fourth-quarter coverage and the 10-year’s next move. They will show which of these payouts is pulling ahead of risk-free income.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
