The 30-Year U.S. Treasury Bond Now Has a Higher Yield Than Ford and Coca-Cola. Is It Now the Best Asset for Passive Income?

The 30-year U.S. Treasury bond yield has climbed to 5.23%, now surpassing the dividend yields of both KO and F. The move reflects investor concern over the $40 trillion national debt, persistent inflation, and geopolitical uncertainty pressuring government debt markets.

The shift marks a notable crossover: risk-free Treasuries now offer more income than two dividend-paying blue chips. KO brings a 64-year dividend track record and brand strength, while F faces a weaker operational history. The Motley Fool analysis favors KO over the 30-year bond, citing earnings growth potential and consistent dividend increases, but leans toward the Treasury over F given Ford's comparative underperformance.

For income-focused portfolios, the 5.23% Treasury yield eliminates the traditional yield premium investors demanded for equity risk in these names. The question now centers on whether Treasury safety outweighs the dividend growth potential at KO or the turnaround story at F.