2 Dividend Stocks to Buy Now With Higher Yields Than the 30-Year U.S. Treasury Bond

The 30-year Treasury bond currently offers a yield of approximately 5.24%, a high rate that few dividend stocks can match. This comes with a guarantee from the U.S. government, making it a safe investment. Recently, the U.S. Treasury announced a $6 billion buyback of longer-dated Treasuries, sparking questions about why dividend stocks offer higher yields and whether the market's fear is justified.

Two consumer goods stocks stand out with yields higher than the Treasury bond. Altria Group (MO) raised its quarterly dividend to $1.11 per share, a 4.7% increase marking the 61st raise in 57 years. This resulted in a yield of around 6.4%. The company announced a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International, creating an export channel for Marlboro that could unlock new profit sources.

However, Altria's vaping product, Njoy Ace, has been off shelves since April 2025 due to a patent ruling, and management has not announced a return. Additionally, a federal judge rejected Altria's constitutional challenge to the trade commission's authority in September.

Kraft Heinz Company (KHC) declared a $0.40 quarterly dividend, which has remained flat for years. While the payout ratio appears concerning due to writedowns, Kraft Heinz has recently partnered with The Walt Disney Company, putting 10 of its brands in Disney parks, cruise ships, studios, and streaming. This move may provide cultural relevance and consistent product sales.

Despite bonds offering consistency, the higher potential return of these companies makes them an attractive option for income investors. However, it's worth noting that Kraft Heinz was not included in The Motley Fool Stock Advisor's list of top 10 stocks for investment, which could impact potential returns.