Even With 10-Year Rates at 5.3%, I'd Still Rather Buy These 3 Dividend Stocks and Hold Through 2036

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Why Dividend Stocks Beat Bonds Even With Rising Yields

Despite 10-year yields at 5.3%, some dividend stocks still offer better long-term growth than bonds.

South Africans often watch the USD/ZAR closely, and with global yields rising, bonds might look tempting. But a 5.3% US Treasury yield, especially locked in for 10 years, doesn't guarantee growth beyond that fixed income. Stocks like Nike, Church & Dwight, and Hormel offer something bonds can't: rising dividends and earnings growth. Take Church & Dwight; its 30-year streak of dividend increases and management's 5-8% earnings growth target make it the safest bet. In contrast, Nike feels more like a gamble—its payout ratio is tight, and execution risk is high, so it’s not for the faint-hearted. Hormel looks attractive with a 5.6% yield but depends heavily on a successful turnaround amid margin pressures. For rand investors, the key risk is USD/ZAR volatility, which can swing returns significantly. If the rand weakens, those US-based dividends become worth more locally but with currency risks attached. If global growth stalls or inflation surprises, the bond allure could win instead. this is just our opinion and not financial advice