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4 Solid Shareholder Yield Stocks That Can Beat Rising Treasury Yields
Read MoreHide Full Article
Key Takeaways
Shareholder yield combines dividends, buybacks and debt paydown, adding growth beyond fixed bond income.
Dividend growth and share repurchases can boost cash flows and ownership, creating total-return potential.
BP, CIB, GLP and PBI stand out for strong shareholder yields, backed by dividends, buybacks and debt cuts.
An updated edition of the July 28, 2026, article.
With U.S. Treasury yields surging ahead of 5%, investors may rethink the role of stocks in their portfolios. After years of historically low bond yields, the sharp rise in borrowing costs has made fixed-income returns more competitive with equities. According to the Federal Reserve Economic Data site, 10-year Treasury yields have climbed above 5% — a level last touched in 2023 and sustained before 2007. This jump in bond yields reflects stickier inflation and uncertainty around future Fed policy. Per this Reuters article, a poll in September indicates the Federal Reserve will raise rates at its next meeting tomorrow, followed by another hike in March next year. The combination of elevated inflation forecasts and renewed fiscal deficits has kept bond yields elevated, with the 10-year yield near 5% and the 30-year yield above 5%.
This bond market backdrop creates both challenges and opportunities for stock investors. On one hand, higher yields put pressure on equity valuations, while rising discount rates reduce the present value of future profits. Meanwhile, more attractive bond returns can lure capital out of stocks. Several analysts remain concerned that a 5% yield threshold could trigger a broad market pause as investors reassess risk. On the other hand, stock dividends and buybacks are not fixed the way bond coupons are. For investors focused on current income and total return, this creates a potential edge — stock shareholder yield can grow over time, whereas a bond’s coupon payment is locked in at purchase.
Dividend-paying companies can raise payouts as profits grow, and share repurchases effectively boost each remaining shareholder’s ownership. In other words, a firm’s shareholder yield — the combined return from dividends plus net buybacks and debt paydown — can outpace a static Treasury return. For example, with a 5% 10-year yield, a portfolio of high-yielding stocks that raises dividends by even a few percentage points annually could deliver increasing cash flows year after year. A Treasury note, by contrast, will only return its fixed interest and principal at maturity.
Among companies offering attractive shareholder yields are BP (BP - Free Report) , Grupo Cibest S.A. (CIB - Free Report) , Global Partners (GLP - Free Report) and Pitney Bowes (PBI - Free Report) . These stocks also carry favorable Zacks Ranks and Style Scores, suggesting potential upside in their share prices this year and enhancing their ability to generate long-term shareholder value. Each of these companies has delivered strong share-price gains so far this year, significantly outperforming the S&P 500 Index.
Fixed Return vs. Growth Potential
There is a critical difference in payoffs between Treasury note and stocks. Treasuries promise to return the original principal at par on maturity and pay interest at the stated rate. Once purchased, a bond’s yield is fixed unless the bond is sold before maturity. Stocks, however, offer no such guarantee on principal — their value can rise or fall — but they do offer upside through capital gains and higher future payouts.
In an inflationary or growth environment, the owners of well-run companies often benefit from rising profits. Investors who lock into a 5% Treasury yield today are essentially capped at that return, whereas shareholders in a dividend-growing company may see their yield compound.
Financial market observers have noted this dynamic. With bond yields at cycle highs, the ratio of bond to stock yields has flipped compared to recent years. According to a Reuters article, Societe Generale’s Albert Edwards points out that the ratio of long-term Treasury yields to the dividend yield on stocks is now at its highest point since 2000.
In plain terms, government bonds have reclaimed a yield advantage over typical equity dividends. This shift also highlights why shareholder-yield strategies may shine — many companies with robust cash flows can increase payouts, potentially overtaking fixed bond income over the long run.
Persistently high inflation can erode the purchasing power of bond interest. According to analysts, long-run bond returns can be “eroded by persistent inflation and a weakening currency.”
Stocks, on the other hand, represent ownership in businesses whose revenues and profits often rise alongside prices. Many investors have begun questioning the traditional role of bonds as an inflation hedge. Rising Treasury yields, with the 10-year and 30-year yields at around 5% and 5.4%, respectively, as of mid-2026, reflect these inflationary pressures. Against this backdrop, equities with high dividend and buyback yields may offer a real-return premium.
Rising Yields and Shareholder-Friendly Companies
How can shareholders capitalize on these conditions? One approach is to favor companies that deliver cash back to investors at attractive rates. Look for firms with a track record of strong free cash flow and disciplined capital allocation. These are often businesses in stable industries — energy, telecommunications, utilities, consumer staples — that can sustain big dividends and share repurchases without sacrificing balance-sheet health. With economic uncertainty still high, such payout-focused companies can provide a partial buffer against market swings.
A shareholder-yield strategy doesn’t guarantee the big tech-style returns of the last decade, but it does offer concrete returns today plus some growth potential. Importantly, it also introduces a measure of defensive growth. In a rising-rate environment, equity income producers can keep portfolios invested in stocks while mitigating valuation risk.
Beyond Income: Total Return Potential
Finally, it’s worth emphasizing that dividend stocks can still participate in market rallies. When overall markets rise, high-yielding stocks often benefit as well. Unlike bonds, whose prices typically fall as yields rise, cash-rich companies can see their share prices appreciate when their earnings outlook improves. Over longer periods, equities have historically outperformed bonds, supported in part by reinvested dividends and capital appreciation.
Looking ahead to the Fed’s next meeting, most observers see little chance for rate cuts in late 2026. With monetary policy likely to remain tighter than markets had anticipated, fixed-income yields may stay elevated. In such an environment, high-shareholder-yield stocks offer an attractive alternative for investors seeking to enhance portfolio returns.
Our Shareholder Yield Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Stocks Offering Attractive Shareholder Yield
BP stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a good dividend yield of around 4.48%.
BP has increased its dividend payout six times in the past five years, reflecting an annualized dividend growth rate of 11.24%. The payout ratio of 40% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that BP is keeping funds for better investment opportunities.
BP has consistently repurchased shares since 2014. The company repurchased shares worth $7.13 billion and $4.48 billion in 2024 and 2025, respectively. Year to date, BP has repurchased shares worth $45 million. It has also reduced its long-term debt from $55.07 billion (in 2024) to $52.45 billion (as of June 2026-end).
BP’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
Shares of BP have gained 32.2% so far this year. The company currently sports a Zacks Rank #1 (Strong Buy) and a Zacks VGM Score of A, implying strong potential for continued uptrend. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
Grupo Cibest S.A. provides a range of financial products and services to its customer base throughout Colombia, Latin America and the Caribbean region. The company can offer stability to investors’ portfolios through its strong shareholder yield.It offers a dividend yield of around 5.22%.
CIB has increased its dividend payout nine times in the past five years, reflecting an annualized dividend growth rate of 58.1%. The payout ratio of 60% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that CIB is keeping funds for better investment opportunities.
Grupo Cibest S.A. authorized a share repurchase program worth approximately $21.5 billion in March 2026. The company bought nearly 4.1 million shares till June, representing 20.5% of repurchase authorization. CIB has also strengthened its balance sheet, reducing long-term debt from $5.39 billion in 2024 to $2.1 billion as of June 31, 2026.
Grupo Cibest S.A.’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
Shares of CIB have surged 60.1% so far this year. The company currently flaunts Zacks Rank of 1 but a Zacks VGM Score of F, suggesting moderate potential for the ongoing uptrend to continue.
Image Source: Zacks Investment Research
Global Partners is a major American midstream energy supply and retail company. The company has the potential to offer stability amid rising volatility through its dividend payments, share repurchases and effective debt management. The company offers a good dividend yield of around 6.10%.
GLP has increased its dividend payout 18 times in the past five years, reflecting an annualized dividend growth rate of 6.98%. The payout ratio of 62% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that GLP is keeping funds for better investment opportunities.
It has also reduced its total debt from $1.68 billion in 2024 to $1.65 billion as of June 2026-end. GLP authorized share repurchase programs in May 2009 and repurchased approximately 1.86 million common units under the program till June 2026. The company has repurchased 124,814 common units in the second quarter of 2026. As of Aug. 7, 2026, up to an additional 741,745 were available for repurchase under the share repurchase program.
GLP’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
Shares of Global Partners have surged 22.1% year to date. The company currently carries a Zacks Rank #2 and a Zacks VGM Score of A, implying strong continued upside potential.
Image Source: Zacks Investment Research
Pitney Bowes is another strong candidate for high shareholder yield due to its attractive dividend payments and effective debt management. The company offers a dividend yield of around 2.31%.
PBI has increased its dividend payout five times over the past five years, reflecting an annualized dividend growth rate of 13.95%. The payout ratio of 24% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that PBI is keeping funds for better investment opportunities.
It has also reduced its long-term debt from $2.17 billion in 2022 to $2.01 billion as of June 2026-end. In February, the board of directors authorized an increase to PBI’s share repurchase program of $250 million to a total of $750 million. The company repurchased common stock worth $52.8 million during the second quarter of 2026.
Pitney Bowes’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
The company’s shares have surged 63.9% so far this year. With a Zacks Rank of 2 and a Zacks VGM Score of A, PBI appears to have a strong chance of extending its current uptrend.
View the Zacks #1 Rank List
Image: Bigstock
4 Solid Shareholder Yield Stocks That Can Beat Rising Treasury Yields
Key Takeaways
An updated edition of the July 28, 2026, article.
With U.S. Treasury yields surging ahead of 5%, investors may rethink the role of stocks in their portfolios. After years of historically low bond yields, the sharp rise in borrowing costs has made fixed-income returns more competitive with equities. According to the Federal Reserve Economic Data site, 10-year Treasury yields have climbed above 5% — a level last touched in 2023 and sustained before 2007. This jump in bond yields reflects stickier inflation and uncertainty around future Fed policy. Per this Reuters article, a poll in September indicates the Federal Reserve will raise rates at its next meeting tomorrow, followed by another hike in March next year. The combination of elevated inflation forecasts and renewed fiscal deficits has kept bond yields elevated, with the 10-year yield near 5% and the 30-year yield above 5%.
This bond market backdrop creates both challenges and opportunities for stock investors. On one hand, higher yields put pressure on equity valuations, while rising discount rates reduce the present value of future profits. Meanwhile, more attractive bond returns can lure capital out of stocks. Several analysts remain concerned that a 5% yield threshold could trigger a broad market pause as investors reassess risk. On the other hand, stock dividends and buybacks are not fixed the way bond coupons are. For investors focused on current income and total return, this creates a potential edge — stock shareholder yield can grow over time, whereas a bond’s coupon payment is locked in at purchase.
Dividend-paying companies can raise payouts as profits grow, and share repurchases effectively boost each remaining shareholder’s ownership. In other words, a firm’s shareholder yield — the combined return from dividends plus net buybacks and debt paydown — can outpace a static Treasury return. For example, with a 5% 10-year yield, a portfolio of high-yielding stocks that raises dividends by even a few percentage points annually could deliver increasing cash flows year after year. A Treasury note, by contrast, will only return its fixed interest and principal at maturity.
Among companies offering attractive shareholder yields are BP (BP - Free Report) , Grupo Cibest S.A. (CIB - Free Report) , Global Partners (GLP - Free Report) and Pitney Bowes (PBI - Free Report) . These stocks also carry favorable Zacks Ranks and Style Scores, suggesting potential upside in their share prices this year and enhancing their ability to generate long-term shareholder value. Each of these companies has delivered strong share-price gains so far this year, significantly outperforming the S&P 500 Index.
Fixed Return vs. Growth Potential
There is a critical difference in payoffs between Treasury note and stocks. Treasuries promise to return the original principal at par on maturity and pay interest at the stated rate. Once purchased, a bond’s yield is fixed unless the bond is sold before maturity. Stocks, however, offer no such guarantee on principal — their value can rise or fall — but they do offer upside through capital gains and higher future payouts.
In an inflationary or growth environment, the owners of well-run companies often benefit from rising profits. Investors who lock into a 5% Treasury yield today are essentially capped at that return, whereas shareholders in a dividend-growing company may see their yield compound.
Financial market observers have noted this dynamic. With bond yields at cycle highs, the ratio of bond to stock yields has flipped compared to recent years. According to a Reuters article, Societe Generale’s Albert Edwards points out that the ratio of long-term Treasury yields to the dividend yield on stocks is now at its highest point since 2000.
In plain terms, government bonds have reclaimed a yield advantage over typical equity dividends. This shift also highlights why shareholder-yield strategies may shine — many companies with robust cash flows can increase payouts, potentially overtaking fixed bond income over the long run.
Persistently high inflation can erode the purchasing power of bond interest. According to analysts, long-run bond returns can be “eroded by persistent inflation and a weakening currency.”
Stocks, on the other hand, represent ownership in businesses whose revenues and profits often rise alongside prices. Many investors have begun questioning the traditional role of bonds as an inflation hedge. Rising Treasury yields, with the 10-year and 30-year yields at around 5% and 5.4%, respectively, as of mid-2026, reflect these inflationary pressures. Against this backdrop, equities with high dividend and buyback yields may offer a real-return premium.
Rising Yields and Shareholder-Friendly Companies
How can shareholders capitalize on these conditions? One approach is to favor companies that deliver cash back to investors at attractive rates. Look for firms with a track record of strong free cash flow and disciplined capital allocation. These are often businesses in stable industries — energy, telecommunications, utilities, consumer staples — that can sustain big dividends and share repurchases without sacrificing balance-sheet health. With economic uncertainty still high, such payout-focused companies can provide a partial buffer against market swings.
A shareholder-yield strategy doesn’t guarantee the big tech-style returns of the last decade, but it does offer concrete returns today plus some growth potential. Importantly, it also introduces a measure of defensive growth. In a rising-rate environment, equity income producers can keep portfolios invested in stocks while mitigating valuation risk.
Beyond Income: Total Return Potential
Finally, it’s worth emphasizing that dividend stocks can still participate in market rallies. When overall markets rise, high-yielding stocks often benefit as well. Unlike bonds, whose prices typically fall as yields rise, cash-rich companies can see their share prices appreciate when their earnings outlook improves. Over longer periods, equities have historically outperformed bonds, supported in part by reinvested dividends and capital appreciation.
Looking ahead to the Fed’s next meeting, most observers see little chance for rate cuts in late 2026. With monetary policy likely to remain tighter than markets had anticipated, fixed-income yields may stay elevated. In such an environment, high-shareholder-yield stocks offer an attractive alternative for investors seeking to enhance portfolio returns.
Our Shareholder Yield Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Stocks Offering Attractive Shareholder Yield
BP stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a good dividend yield of around 4.48%.
BP has increased its dividend payout six times in the past five years, reflecting an annualized dividend growth rate of 11.24%. The payout ratio of 40% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that BP is keeping funds for better investment opportunities.
BP has consistently repurchased shares since 2014. The company repurchased shares worth $7.13 billion and $4.48 billion in 2024 and 2025, respectively. Year to date, BP has repurchased shares worth $45 million. It has also reduced its long-term debt from $55.07 billion (in 2024) to $52.45 billion (as of June 2026-end).
BP’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
Shares of BP have gained 32.2% so far this year. The company currently sports a Zacks Rank #1 (Strong Buy) and a Zacks VGM Score of A, implying strong potential for continued uptrend. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
Grupo Cibest S.A. provides a range of financial products and services to its customer base throughout Colombia, Latin America and the Caribbean region. The company can offer stability to investors’ portfolios through its strong shareholder yield.It offers a dividend yield of around 5.22%.
CIB has increased its dividend payout nine times in the past five years, reflecting an annualized dividend growth rate of 58.1%. The payout ratio of 60% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that CIB is keeping funds for better investment opportunities.
Grupo Cibest S.A. authorized a share repurchase program worth approximately $21.5 billion in March 2026. The company bought nearly 4.1 million shares till June, representing 20.5% of repurchase authorization. CIB has also strengthened its balance sheet, reducing long-term debt from $5.39 billion in 2024 to $2.1 billion as of June 31, 2026.
Grupo Cibest S.A.’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
Shares of CIB have surged 60.1% so far this year. The company currently flaunts Zacks Rank of 1 but a Zacks VGM Score of F, suggesting moderate potential for the ongoing uptrend to continue.
Image Source: Zacks Investment Research
Global Partners is a major American midstream energy supply and retail company. The company has the potential to offer stability amid rising volatility through its dividend payments, share repurchases and effective debt management. The company offers a good dividend yield of around 6.10%.
GLP has increased its dividend payout 18 times in the past five years, reflecting an annualized dividend growth rate of 6.98%. The payout ratio of 62% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that GLP is keeping funds for better investment opportunities.
It has also reduced its total debt from $1.68 billion in 2024 to $1.65 billion as of June 2026-end. GLP authorized share repurchase programs in May 2009 and repurchased approximately 1.86 million common units under the program till June 2026. The company has repurchased 124,814 common units in the second quarter of 2026. As of Aug. 7, 2026, up to an additional 741,745 were available for repurchase under the share repurchase program.
GLP’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
Shares of Global Partners have surged 22.1% year to date. The company currently carries a Zacks Rank #2 and a Zacks VGM Score of A, implying strong continued upside potential.
Image Source: Zacks Investment Research
Pitney Bowes is another strong candidate for high shareholder yield due to its attractive dividend payments and effective debt management. The company offers a dividend yield of around 2.31%.
PBI has increased its dividend payout five times over the past five years, reflecting an annualized dividend growth rate of 13.95%. The payout ratio of 24% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that PBI is keeping funds for better investment opportunities.
It has also reduced its long-term debt from $2.17 billion in 2022 to $2.01 billion as of June 2026-end. In February, the board of directors authorized an increase to PBI’s share repurchase program of $250 million to a total of $750 million. The company repurchased common stock worth $52.8 million during the second quarter of 2026.
Pitney Bowes’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
The company’s shares have surged 63.9% so far this year. With a Zacks Rank of 2 and a Zacks VGM Score of A, PBI appears to have a strong chance of extending its current uptrend.
Image Source: Zacks Investment Research