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Today, 10-year Treasuries are yielding 2.99% and 30-year Treasuries are yielding 3.99%. If you are a long-term holder looking for income, that’s a long time to lock in your money at those yields. At the end of the term, you’ll get your principal back, but it will be shrunken by inflation. If you are looking to buy and sell these for profit, you will need to be very nimble, for as future Treasury yields go up, their principal value will go down. That is the inevitable see-saw relationship between the yields and prices of bonds.

Strong arguments can be made that dividend-paying stocks would be better for long-term income-seekers. They have advantages over bonds, including:

  • The best dividend stocks increase their payouts regularly. They are not “fixed income” investments as bonds are. As the annual distributions increase, your yield (based on what you originally paid) rises.

  • Stock prices are not locked in the price vs. yield see-saw relationship of bonds. Dividend-stock prices can, and often do, rise even as their dividends are increasing. Of course, stocks always bear the risk of falling prices.

It has been widely noted that almost half of the Dow 30 components are now yielding more than 10-year Treasuries. But a better place to look for excellent dividend growth stocks is among the Dividend Champions—stocks that have paid out higher dividends for 25 or more consecutive years. The list and its copious supporting data are researched and compiled by David Fish at DRiP Investing Resource Center. The compilation is available here. I consider this listing to be superior to the better-known Dividend Aristocrats list compiled by S&P. The Dividend Champions document has more than twice as many stocks (100), and it is filled with helpful data such as each company’s industry, the length of its dividend-increase streak, and significant dividend dates. It is updated monthly.

Here are the 21 Dividend Champions yielding more than 30-year Treasuries and the additional 24 Dividend Champions yielding more than 10-year Treasuries. Yields are as of June 30. Stocks are listed in order of declining yields.

4.0% or more

  • CenturyLink (NYSE:CTL) current yield 8.7%, 37-year streak of increased annual payout

  • Altria (NYSE:MO) 7.0%, 42

  • AT&T (NYSE:T) 7.0%, 26

  • Pitney-Bowes (NYSE:PBI) 6.7%, 28

  • Cincinatti Financial (NASDAQ:CINF) 6.1%, 49

  • Vectren (NYSE:VVC) 5.8%, 50

  • Old Republic (NYSE:ORI) 5.7%, 29

  • Consolidated Edison (NYSE:ED) 5.5%, 36

  • Leggett & Platt (NYSE:LEG) 5.2%, 39

  • Black Hills (NYSE:BKH) 5.1%, 40

  • United Bankchares (NASDAQ:UBSI) 5.0%, 36

  • Universal (NYSE:UVV) 4.7%, 39

  • RPM International (NYSE:RPM) 4.6%, 36

  • Middlesex Water (NASDAQ:MSEX) 4.5%, 37

  • Kimberly-Clark (NYSE:KMB) 4.4%, 38

  • WGL Holdings (NYSE:WGL) 4.4%, 34

  • Piedmont Natural Gas (NYSE:PNY) 4.4%, 32

  • Connecticut Water Service (NASDAQ:CTWS) 4.3%, 40

  • Genuine Parts (NYSE:GPC) 4.2%, 54

  • MGE Energy (NASDAQ:MGEE) 4.1%, 34

  • Mine Safety Appliances (NYSE:MSA) 4.0%, 39

3.0% or more

  • Diebold (NYSE:DBD) current yield 3.97%, 57-year streak of increased annual payout

  • Federal Realty Investment Trust (NYSE:FRT) 3.8%, 42

  • Abbott Labs (NYSE:ABT) 3.8%, 38

  • Nucor (NYSE:NUE) 3.8%, 37

  • Johnson & Johnson (NYSE:JNJ) 3.7%, 48

  • Sonoco (NYSE:SON) 3.7%, 27

  • PPG (NYSE:PPG) 3.6%, 38

  • Coca-Cola (NYSE:KO) 3.5%, 48

  • Sysco (NYSE:SYY) 3.5%, 40

  • Clorox (NYSE:CLX) 3.5%, 33

  • VF (NYSE:VFC) 3.4%, 37

  • Automatic Data Processing (NASDAQ:ADP) 3.4%, 35

  • Bemis (NYSE:BMS) 3.4%, 27

  • California Water Service (NYSE:CWT) 3.3%, 43

  • McGraw-Hill (MHP) 3.3%, 37

  • McDonald’s (NYSE:MCD) 3.3%, 33

  • Procter & Gamble (NYSE:PG) 3.2%, 54

  • Pepsico (NYSE:PEP) 3.2%, 38

  • American States Water (NYSE:AWR) 3.1%, 55

  • Northwest Natural Gas (NYSE:NWN) 3.8%, 54

  • Emerson Electric (NYSE:EMR) 3.1%, 53

  • ExxonMobil (NYSE:XOM) 3.1%, 28

  • National Fuel Gas (NYSE:NFG) 3.0%, 40

  • Air Products & Chemicals (NYSE:APD) 3.0%, 28

Note: I have removed from the above list 8 stocks that have gone for more than a year without raising their dividend. They are in danger of losing their Dividend Champion status. Also note that this list is not a buy-list recommendation. Dividend growth investing is a long-term strategy, one that involves holding stocks for long periods of time and little portfolio churn. Do your own due diligence before making any investment.

Disclosure: Long CTL, T, KMB, ABT, JNJ, MCD, PEP, EMR

Source: 45 Dividend Champions With Yields Higher Than Long-Term Treasuries