With the 30 year U.S. Treasury yield at 5.18% and talk shifting toward possible rate hikes, income investors suddenly have real competition from so called risk free bonds. That raises a tough question for your equity portfolio: are dividend stocks still worth the risk if bond yields stay elevated, or could some actually benefit from this reset in expectations? This article focuses on three stocks from a high dividend yield screener that are directly exposed to the latest macro shock and may still appeal to investors who want equity income while being very selective about where they take risk.

Verizon Communications (VZ)

Overview: Verizon Communications is a large U.S. telecom provider that sells wireless, broadband and related services and devices to consumers, businesses and government customers through its Verizon and TracFone brands, as well as fiber and copper networks such as Fios.

Operations: Verizon generates about US$107.6b of revenue from its Consumer segment and US$29.2b from its Business segment, with virtually all of its US$139.1b total coming from the United States.

Market Cap: US$200.9b

Income investors looking for equity yield alongside higher Treasury rates may find Verizon worth a closer look. The stock combines a high dividend around 6% and a long dividend growth record with a large, recurring revenue base from wireless and broadband, supported by cost cuts and new 5G and fiber offerings. At the same time, high debt, slower earnings and revenue growth, and heavy 5G and fiber spending mean the company is sensitive to interest rates and execution missteps, even with most debt at fixed rates. Recent moves in private 5G, AI driven services and satellite partnerships add additional optionality that the headline yield alone may not fully reflect.

Verizon’s high yield and substantial US$139.1b revenue base may be obscuring the key story for equity holders. See how the balance sheet, cash flows and payout compare in the Verizon Communications financial health report

National Grid (LSE:NG.)

Overview: National Grid is a large UK based utility that owns and operates electricity and gas transmission and distribution networks across the UK and northeastern US, earning regulated returns for moving power and gas to homes and businesses.

Operations: National Grid generates about £7.6b of revenue from New York, £4.2b from New England and £2.9b from UK Electricity Transmission, alongside UK Electricity Distribution at £1.9b and £1.1b from National Grid Ventures, with most revenue split between the US at £12.2b and the UK at £5.5b.

Market Cap: £60.2b

For investors considering high yield defensive utilities while long dated Treasury yields push above 5%, National Grid offers a mix of regulated cash flows, a long history of paying dividends and a large, visible investment pipeline. The company plans around £60b of network spending over five years, supported by fresh rate agreements in New York and Massachusetts and the recent £4.5b UK transmission proposals. These factors help underpin earnings resilience even if equity markets face pressure from higher rates. At the same time, heavy capital expenditure, reliance on external debt and regulatory and policy shifts are real risks that can affect dividend coverage and overall returns. As a result, the headline yield and perceived stability warrant closer analysis before deciding how it might fit within an income-focused portfolio.

National Grid’s £60b investment plan and regulated earnings could be masking a more nuanced income story. Find out how cash generation, dividend cover and rate agreements fit together in the analysis report for National Grid

United Utilities Group (LSE:UU.)

Overview: United Utilities Group supplies water and wastewater services across the United Kingdom, while also running related activities in renewable energy generation, property management, financing and corporate trustee services.

Operations: United Utilities generates about £2.6b in revenue from its Regulated UK Water and Wastewater Business, with all of it coming from the United Kingdom.

Market Cap: £9.5b

For income focused investors weighing higher bond yields, United Utilities offers a different type of defence as a regulated UK water utility with inflation linked dividends, a P/E below many global peers and a large infrastructure program backed by an £800m equity raise and around £2.5b of planned investments. The company is investing in technology to reduce leaks and pollution, which could support margins and reduce regulatory penalties, while growing capacity for housing, data centers and clean energy. At the same time, high leverage, weak free cash flow coverage of the dividend and a tougher regulatory tone, including ratings on negative outlook, mean the steady income story comes with balance sheet and policy risks that investors may wish to evaluate in detail before committing capital.

United Utilities’ inflation linked dividends and £2.5b investment push may be masking a sharper earnings story. Get the full context in the analysis report for United Utilities Group

The three high yield stocks in this article are just the beginning, with the full High Dividend Yield Stocks screener surfacing 38 more companies that pair elevated dividend potential with equally compelling income narratives. Use Simply Wall St to identify, analyze and filter for the specific catalysts and financial traits that matter to you so you can focus on the highest conviction dividend ideas rather than sifting through everything on your own.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.