It's getting harder and harder to find stocks that boast better yields than bonds. But investors can do it-if they're willing to bet on a turnaround story like the ones taking place at Verizon, Altria, and United Parcel Service.

A rising stock market has pushed the S&P 500's dividend yield to a record low of around 1%, At the same time, persistent inflation and worries about the U.S. deficit have been lifting Treasury yields. The yield on the 10-year note stands at 4.7%, up more than 0.55 percentage points since the start of the year.

It's led to a difficult situation for income investors looking for stock dividends that can match payouts in the bond market. The problem was highlighted in a widely shared post on X by markets newsletter The Kobeissi Letter.

Of course, all this raises the question: Which stocks' yields are still beating 10-year Treasuries, and are they worth owning?

High-yields stocks always come with a big caveat. A dividend yield that climbs too high is often a sign of underlying struggles. That can lead to a declining share price and, often, a dividend cut.

A case in point is packaged foods company Conagra, which was briefly the S&P 500's highest yielding stock with a payout of more than 10% earlier this year, before changing CEOs and halving the payout in an effort to revive its brands.

To find companies with dividend yields that match or beat bonds and also boast solid earnings prospects, we used FactSet to screen for companies with dividend yields of at least 4.7%, and found just 16 names. We shrank the list further to include companies that are expected to deliver operating profits over the next year.

That led us to just 7 names: Verizon Communications, yielding 5.6%; Altria Group, 6.2%; United Parcel Service, 6.4%; Realty Income Corp., 5.1%; VICI Properties, 6.7%, Amcor, 5.4%, and Hormel Foods, 4.9%,

While these companies are expected to deliver profits, many are still turnaround stories. But several could be attractive buys for investors.

Shares of Verizon are up 23% this year thanks to new CEO Dan Schulman's willingness to slash jobs and signs the company may finally be returning to subscriber growth.

There are still open questions. Schulman, who took the helm in October 2025, has yet to steer the company for a full year, and satellite phone and Internet service from companies like Space X are a looming threat to the cellphone industry.

Still, Wall Street analysts expect Verizon to deliver double-digit earnings growth over the next two years, according to FactSet.

Altria, up 17% this year, is another stock that is trying to find its footing. Marlboro remains America's favorite cigarette brand, but cigarette sales are gradually declining and unlikely to turn around. Smokeless tobacco is a growth category, but here the company has faced stiff sales competition from former corporate sibling Philip Morris International's Zyn brand.

Still, successful price hikes helped Altria boost revenue in the second quarter and analysts expect profit growth of 3% to 5% in 2026 and 2027.

United Parcel Service hasn't rallied as sharply as Verizon or Altria this year; it's up just 3.5%. But there are reasons to be bullish on the stock. The company reported better-than-expected second-quarter earnings in July. While Wall Street analysts expect it to eke out just 0.5% earnings growth for 2026, that should expand to nearly 12% in 2027.

UPS recently extricated itself from a business partnership with Amazon that led to huge package delivery volumes, but measly profits. But the company, a Barron's stock pick from April, has cut more than 60,000 jobs and refocused its business around higher-margins customers like small and medium-size businesses and healthcare.