In his latest article for Forbes.com, Validea CEO John Reese says that dividend-paying stocks — not Treasury bonds — are a good place to look for yield in the current market environment.

With investors flocking to the perceived safety of Treasury bonds amid the U.S.’s economic fears, yields on Treasuries have plunged. “Annual returns of 2.1% for ten years or about 3% for twenty years simply don’t look too attractive — especially when you consider that the U.S. has been flooding the financial system with cash that could eventually lead to some serious inflation,” Reese writes. “Where to turn for yield then? Well, a myriad of companies’ stocks are offering dividend yields twice, or even three times what the Treasury is paying. Of course, you don’t get the guaranteed nominal return on your capital when you buy stocks. But given how the recent downturn has slashed valuations, and given that stocks of strong companies tend to fare far better than bonds during inflationary climates, I think [many] big dividend-payers are a more attractive option right now for those with long-term time horizons.”

Reese uses his “Guru Strategies” — each of which is based on the approach of a different investing great — to find fundamentally sound high-dividend paying stocks. Among those he highlights: communications giant AT&T. Click here to read the full article and see the other picks.