The 10-year Treasury yield is sending a clear message to income investors. In late September, the benchmark note reached 5.2%, its highest level since 2007. As of the market close on Oct. 9, that rate was 5.237%. For anyone comparing dividend stocks against bonds, that’s a high bar to clear.
It’s also a tempting one. A 5.2% coupon backed by the U.S. government feels like the safe, sensible choice. Lock it in, collect your payments, and stop worrying about the stock market.
But that coupon has limits. It never grows. Ten thousand dollars pays $520 a year in 2027 and the same $520 in 2036. Inflation chips away at it the whole time. And “risk-free” only applies if you hold to maturity. If yields keep rising, the note’s market value falls.
5 Stocks That Clear the 10-Year Bar
There’s a common perception that beating 5.2% in stocks means reaching for junk. The fundamentals tell a different story. Plenty of companies pay yields at or above the 10-year Treasury. Many still have real growth drivers.
The key is knowing what you’re buying. A Treasury pays you to wait. A dividend stock pays you to own a business that can expand. Over a decade, that difference can add up.
Here are five high-yield dividend stocks that clear the 10-year bar. They aren’t risk-free. Some carry variable payouts tied to commodity prices or shipping rates. But each offers something a Treasury never will: the chance for your income and capital to grow.
Pipelines Feeding the AI Buildout
Energy Transfer (NYSE: ET) is the steadiest name on this list. The pipeline giant earns fees for moving natural gas. That means its cash flow depends more on volume than commodity prices.
That model is working. In July, Energy Transfer raised its quarterly distribution to $0.34 per unit, its 19th consecutive increase. Management plans to grow the payout 3% to 5% per year. The yield sits near 6.6%, well above the 10-year.
The growth story is just as compelling. Data centers need enormous amounts of power, and natural gas supplies much of it. Energy Transfer recently raised its full-year adjusted EBITDA guidance to between $18.8 billion and $19.1 billion. One caveat for investors. Energy Transfer operates as a partnership, so investors receive a K-1 tax form.
High Yield From Low-Decline Wells
TXO Partners (NYSE: TXO) takes a different approach to oil and gas. It focuses on mature, conventional fields in the Permian, San Juan, and Williston basins. These wells produce steadily without the steep declines of shale.
TXO pays out essentially everything it earns. Its variable distribution policy is designed to deliver all available cash to unitholders. That means payouts rise and fall with energy prices. Investors should expect volatility.
Right now, the trend is moving the right way. The quarterly distribution climbed from $0.30 to $0.36 to $0.40 in 2026. Daily oil production has grown at a 30% compound annual rate since 2022. At its latest payout, TXO’s annualized yield runs well above the 10-year.
A 2026 Winner With Room to Run
Star Bulk Carriers (NASDAQ: SBLK) has been one of the market’s standout performers this year. The dry bulk shipper was up nearly 47% year-to-date by early August. Stronger shipping rates are driving surging earnings and cash flow.
Shareholders are getting their cut. In August, Star Bulk raised its quarterly dividend 80% to $0.90 per share. That puts the yield above 12%. Like TXO, the payout is variable and moves with shipping rates.
The rally may not be over. Even after the big run, SBLK trades around 6 times forward earnings. That’s a steep discount to the broader market. Analysts keep raising estimates, a sign the fundamentals are still catching up to the momentum.
The Contrarian Renewable Play
Renewable energy hasn’t been a popular sector. That’s exactly why Clearway Energy (NYSE: CWEN) deserves a look. The company owns about 5,000 megawatts of wind and solar. It also has 2,500 megawatts of natural gas generation.
The stock has had a big year. Even so, the Class C shares (CWEN) yield around 5.6%. Clearway raises its dividend every quarter. It has grown the payout roughly 7% annually over the past five years.
There’s also a potential catalyst ahead. Renewable energy policy has been a political lightning rod. The November midterm elections could shift the outlook for clean energy incentives. For contrarians, that uncertainty may be an opportunity rather than a reason to stay away.
Affordable Housing in a Locked-Up Market
The housing market remains stuck. High mortgage rates are keeping buyers out and owners locked into their homes. That’s pushing more Americans toward affordable alternatives like manufactured housing.
UMH Properties (NYSE: UMH) is positioned to benefit. The REIT owns 145 manufactured home communities across 12 states. As of June 30, portfolio occupancy reached 89%. Rental home occupancy hit 95.3%. Both numbers have been climbing.
The dividend is $0.90 per share annually, a yield of about 5.4%. The payout hasn’t increased yet in 2026. But rising occupancy and the conversion of inventory into rental homes give UMH room to grow its cash flow.
Safety Doesn’t Have to Mean Standing Still
A 5.2% Treasury note is a reasonable choice for investors who need guaranteed income. But it’s a fixed bet that today’s yield will be enough tomorrow.
These five stocks offer a different trade. Each yields at or above the 10-year. Each has a growth driver the market may be underestimating. And each gives investors a chance to grow their income instead of watching inflation erode it.
