NEW YORK ( TheStreet) -- According to Benjamin Graham's margin of safety principal -- a measure of relative value between stocks and bonds -- buying an S&P 500 index fund poses less risk than purchasing long-term U.S. debt.

However, the dividend yield of the S&P 500 -- at 2.09% -- is scraping against all-time lows.

This puts income investors in a bind: Bonds with a strong credit rating don't yield much, exposing investors to a substantial amount of interest rate risk on the 10-30-year end of the curve.

Stocks -- when purchased through an index fund -- offer an earnings yield far in excess of U.S. Treasury bonds, but don't offer much in terms of absolute yield. That's acceptable for those seeking long-term appreciation, but troublesome for those in need of income.

One strategy that income-focused investors should consider is allocating their portfolios toward a blend of U.S. fixed income and carefully chosen dividend stocks.

Even though U.S. bond yields are low, if the country becomes tangled in a Japan-like quagmire, already-low yields could drop further. This scenario could offer capital appreciation opportunities and (at least some) recession protection.

Regarding stocks, there are several high-yield opportunities that -- with diversification -- offer reasonable opportunities for income, capital appreciation and safety.

The 10 stocks on the following pages have been screened for the following criteria:
  • Each stock yields more than a 30-year Treasury bond.
  • TheStreet Ratings recommends each stock as a buy.

As always, stock ratings should not be treated as gospel -- rather, use them as a starting point for your own research.

The stocks on the following pages are ranked by their dividend yield, in ascending order.

If you liked this article you might like

The 6 Medications Being Used to Tackle the Opioid Epidemic

Dow, S&P 500 Set New Records as Fed Moves to Unwind Balance Sheet

Stocks In Negative Territory as Chances for December Hike Surge

The Wait for 'Milestone' Fed Meeting Keeps Stocks in Flux