Pro: Scrap The 10-Year Yield In Favor Of These 2 Stocks

Investors looking for safety in the 10-year Treasury may want to reconsider their investment thesis and buy two major Wall Street bank stocks instead, according to Mark Tepper, the president and CEO of the wealth management firm Strategic Wealth Partners.

What Happened

The U.S. Treasury yield offers investors a safe 2.32-percent return, but investors may want to consider investing in dividend-paying stocks instead, Tepper said during a recent CNBC "Trading Nation" segment.

Dividend-paying stocks have outperformed their non-dividend paying peers with less volatility dating back to 1927.

"At the end of the day that is what everyone wants," he said. "More return, less risk."

'Top-Notch' Pick

One of the dividend-paying stocks Tepper said he likes is JPMorgan Chase & Co. JPM.

The bank's 2.9-percent dividend yield compares more favorably to current Treasury yields, and the "top-notch" big bank is trading at a cheap valuation at around 10 times forward earnings and backed by "the best" management team in the financial industry, he said. 

'Dirt-Cheap' Pick

Investors may want to also consider Morgan Stanley MS, which offers a 2.8-percent dividend yield, Tepper said.

The rival big bank boasts multiple attractive business units, including a wealth management business with recurring revenue streams, he said.

Shares of the bank also happen to be "dirt-cheap" at a price-to-earnings multiple of eight times, the CEO said. 

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