Key Points

• Altria found a new profit source by using tobacco exports to unlock tax savings.

• Kraft Heinz is betting Disney can help rebuild relevance for its aging food brands.

• Both yields beat Treasuries, but remember, investors are accepting real business risks for that extra income.

• 10 stocks we like better than Kraft Heinz ›

The 30-year Treasury bond pays about 5.24% right now, which is a genuinely difficult number for dividend stocks to beat. It is also the highest that benchmark has been in years, well above its 10-year yield average of 4.74%, and it comes with a guarantee from the U.S. government that no company can match. Recently, the U.S. Treasury announced a larger-than-expected $6 billion buyback of longer-dated Treasuries, while Secretary Scott Bessent challenged this week's investors to bet against his yen strategy.

So when a consumer goods stock offers more, the honest question is not "Why is the yield so high?" but "What is the market afraid of, and is that fear correct?" Two consumer names clear the bar today. Each one is priced for something to go wrong. My read is that in two of the three cases, the market has the direction right and the magnitude wrong.

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1. Altria pays 6.4% and just found money in the tax code

Altria Group (NYSE: MO) raised its quarterly dividend 4.7% to $1.11 a share in late August, marking the 61st increase in 57 years and putting the yield at about 6.4%. What interests me more than the raise is what came three days earlier. Philip Morris USA, an Altria operating company, entered a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International Inc., with first shipments expected in early 2027.

Reuters reporter Emma Rumney explained the mechanism as a rebate called the "double duty drawback" that lets U.S. tobacco companies that export products claw back federal excise taxes already paid on domestic sales. Altria makes Marlboro in the United States and sells it nowhere else, so building an export channel is a way to unlock a money source it previously could not touch.

That is a real, structural profit source that has nothing to do with selling more cigarettes to Americans, which matters because Americans keep buying fewer of them. The risk is unresolved: Njoy Ace, Altria's vaping product, has been off shelves since April 2025 after a patent ruling, and management still has not announced when it might return. A federal judge also rejected Altria's constitutional challenge to the trade commission's authority in early September. Buy this for the cash potential, not the transition.

2. Kraft Heinz yields 6.4% and rented Disney's imagination

The Kraft Heinz Company (NASDAQ: KHC) declared its regular $0.40 quarterly dividend in August, good for roughly 6.4%. The payout has been flat for years, and the payout ratio looks alarming on paper because of writedowns, so nobody should mistake this for a growth dividend.

What changed my thinking was July's multiyear alliance with The Walt Disney Company, putting 10 Kraft Heinz brands into Disney parks, cruise ships, studios, and streaming. Kraft Heinz chief executive Steve Cahillane, who took over in January, paused the planned company split and redirected roughly $700 million into brands instead.

Here is my actual stance. Shelf space is a shrinking asset for legacy food brands.Walk into many grocery stores, and you see condiments being rebranded as the store's own brand. Building condiment stations in a massive customer park is Kraft Heinz buying cultural relevance it can no longer generate on its own. This seems to me to be a safe bet on consistent volume for consistent product sales.

Both these companies are built around consistency and solid day-to-day products, and that matters when you're looking for income. But bonds offer consistency, too, so at these yields, the choice comes down to whether you want the certainty of Treasuries or the higher potential return of owning these companies.

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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Kraft Heinz and Philip Morris International. The Motley Fool has a disclosure policy.