3 Dividend Stocks Paying 5%+ As Higher Treasury Yields Put Income Back In Focus

Central banks are still wrestling with stubborn inflation, and Treasury yields have moved higher as markets react to inflation risk warnings. That puts steady income back in the spotlight. When bond markets feel jumpy, reliable 5%+ yields from Dividend Fortresses can look especially appealing. This article highlights three of the strongest dividend fortress stocks from the screener and explains what makes their income streams worth a closer look.

The three Dividend Fortresses in this article are only a sample from the full screen, which surfaced 3 more companies with equally compelling income stories that are not covered below. To identify your own high conviction ideas, head straight to the Dividend Fortresses screener.

Halyk Bank of Kazakhstan (LSE:HSBK)

Overview: Halyk Bank of Kazakhstan is a diversified commercial bank that takes deposits and lends to retail, SME and corporate clients across Kazakhstan and nearby markets. It uses this core spread business to generate the net interest income that underpins its high dividend payouts. Alongside everyday accounts and term deposits, it offers mortgages, consumer and business loans, cards and investment products, which support recurring income suited to a dividend fortress profile.

Operations: Halyk Bank generates most of its revenue from Corporate Banking at KZT 729,918 million, with additional contributions from Investment Banking at KZT 360,129 million, SME Banking at KZT 205,817 million, Retail Banking at KZT 120,436 million and unallocated items at KZT 374,952 million, largely within Kazakhstan at KZT 3,406,777 million.

Market Cap: KZT 9.25b

Halyk Bank of Kazakhstan may suit investors who want fortress style income built on a large deposit base and recurring net interest income, while still considering total return. The bank reports high ROE, robust net interest margins and has confirmed sizeable dividends for 2025, but also faces credit risks from a high bad loan ratio and relatively low loss reserves that could pressure future payouts if conditions worsen. Governance quality and a growing digital franchise provide additional qualitative support. The key consideration is whether the current valuation and earnings power fairly reflect those credit risks and Kazakhstan concentration or leave room for income plus potential re rating.

Halyk Bank of Kazakhstan combines high reported ROE, firm net interest margins and confirmed 2025 dividends in a way many investors may be underestimating. The full picture only comes into focus once you weigh the credit risks and Kazakhstan exposure in the 3 key rewards and 3 important warning signs

Aviva (LSE:AV.)

Overview: Aviva is a long established UK insurer that provides life insurance, pensions, savings and general insurance to individuals and businesses across the UK, Ireland, Canada and parts of Asia. Its Insurance, Wealth & Retirement arm, which manages pension, annuity and savings products, is a key source of relatively steady cash flows that helps support Aviva’s high dividend profile within the Dividend Fortresses theme, alongside its broader general insurance and asset management activities.

Operations: Aviva generates most of its revenue from UK & Ireland General Insurance at £14.1b and Insurance, Wealth & Retirement at £11.2b, with additional contributions from Canada General Insurance at £4.5b, Aviva Investors at £424m, International Investments at £131m and other group activities and adjustments.

Market Cap: £21.8b

Aviva gives you exposure to a long running UK life insurance and pensions franchise that helps fund a 5.38% dividend yield, backed by workplace retirement savings and fee based wealth products that tend to be sticky through cycles. At the same time, recent half year earnings fell to £407m and net margins have narrowed to 1.8%, which raises fair questions about how comfortably that dividend is covered, especially with all liabilities funded through external sources rather than customer deposits. Analysts have highlighted potential for faster earnings growth, and brokers such as JPMorgan have indicated a more positive stance in 2026. However, the rich P/E and execution risks around deals such as Direct Line mean investors still need to judge whether this fortress income stream justifies the valuation and risk profile.

Aviva’s rich P/E and 5.38% yield hint that something bigger may be building beneath those slim 1.8% net margins. The real question is what the analyst forecasts for Aviva implies for how this story plays out next.

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a London based asset manager that runs renewable energy and other real assets funds alongside private equity and venture strategies, giving investors access to income focused infrastructure such as solar, onshore wind and battery storage. These contract backed energy and infrastructure funds are a key reason Foresight Group Holdings features in the Dividend Fortresses screener, even though they sit alongside more variable private equity and venture activities.

Operations: Foresight Group Holdings generates most of its revenue from Real Assets at £114.8 million and the balance from Private Equity at £50.1 million, with the bulk of business sourced in the United Kingdom and a meaningful contribution from Australia.

Market Cap: £550.1 million

Foresight Group Holdings may merit closer attention for investors who see the appeal of Dividend Fortresses as dependable income underpinned by real world assets. Its renewable energy and infrastructure funds are built around long term, contract backed cashflows that can support regular distributions. In addition, fee based growth and buybacks provide another potential layer of support for future payouts. At the same time, the company relies on external borrowing instead of customer deposits and still earns a portion of income from more cyclical private equity and performance fees, so distribution stability is not assured. The interest lies in how this mix of infrastructure income, changes in assets under management and active capital returns might affect outcomes for long term yield focused investors.

Foresight Group Holdings is building fee based growth on top of long term infrastructure cashflows, yet the market may not fully price that mix. Before you decide how it fits your income plan, check the analyst forecasts for Foresight Group Holdings

Seeking Fresh Alternatives Beyond Dividends

Markets move fast and fresh stock ideas do not stay under the radar for long. Consider using this moment before momentum builds and others get caught chasing.

• Explore potential early breakout trends across cash generative businesses screened for quality in the 11 high quality undervalued stocks while that combination of fundamentals and pricing still looks fresh.
• Review fast evolving opportunities where automation demand is developing through the 38 robotics and automation stocks and see which operators appear to be gaining momentum.
• Assess potential capital rotation into real assets by reviewing the curated 30 best rare earth metal stocks that could be positioned to respond if interest intensifies and valuations change.

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.

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