Are you ready to up your investing game and make some serious gains? Look no further! We've done the research and put together a list of the top high-yield dividend stocks for May that you won't want to miss out on. We’ll take a look at some of the best dividend stocks. These stocks have consistently offer generous dividend payouts, making them a smart investment choice for both short-term and long-term gains. From the reliable MO and VZ to the innovative MMM and IBM, and not to mention the steady O and C, these stocks are sure to take your portfolio to the next level. So, whether you're a seasoned investor or just starting out, read on to learn more about the top high-yield dividend stocks for May, including INT, PFE, ABBV, WBA, and more!
First off, what is a dividend?
Dividend Definition: A stock dividend is a dividend payment made by a corporation to its shareholders in the form of additional shares of stock, rather than cash. The number of shares received by each shareholder is usually proportional to their existing holdings of the company's stock. A stock dividend can be seen as a way for a company to reward its shareholders by allowing them to own a greater portion of the company without having to pay out cash. While a stock dividend does not affect the overall value of the shareholder's investment, it does increase the number of shares held, which can affect the stock's market price and potentially increase the shareholder's total return over time.
Looking for a list of what other stocks that pay dividends? A great place to start are the Dividend Aristocrats. Here's a great list of Dividend Aristocrats! What are dividend aristocrats? Dividend Aristocrats are a select group of S&P 500 companies that have consistently increased their dividend payments to shareholders for at least 25 consecutive years. These companies are typically considered to be stable and reliable, with a long track record of profitability and strong financial performance. To qualify as a Dividend Aristocrat, a company must meet certain criteria, including being listed on the S&P 500, having a minimum market capitalization of $3 billion, having a minimum daily trading volume of $5 million, and meeting certain liquidity and corporate governance requirements. Dividend Aristocrats are often favored by income investors seeking steady and reliable dividend income, as well as investors who prioritize long-term growth and stability in their portfolio. However, it's important to note that past performance is not a guarantee of future results, and investors should always conduct their own research and due diligence before making any investment decisions.
What is income investing?
Dividend income investing is a strategy where an investor primarily focuses on investing in stocks that pay regular dividends, which are a portion of the company's earnings distributed to shareholders. The goal of dividend income investing is to generate passive income from the dividends received while also benefiting from the long-term appreciation of the stock's value. By investing in dividend-paying stocks, investors can receive regular income streams, which can be reinvested to compound returns over time. Additionally, dividend-paying stocks are often viewed as stable and mature companies with a track record of consistent financial performance. This makes dividend income investing a popular choice among investors seeking a steady income stream and long-term growth potential.
Want to learn more about Dividend Income Investing? Check out my Ultimate Dividend Investing Guide
1. MO Stock
MO Dividend Yield as 28APR23: 7.89%
YTD Performance: 4.66%
Ladies and gentlemen, gather around and let's talk about MO stock, also known as Altria Group Inc. Now, I know what you're thinking - "Isn't that a cigarette company? Shouldn't we all just quit smoking and invest in kale or something?" But hold on a minute, because there's more to MO than meets the eye. This company has a long and storied history, dating back to the 1800s when it was founded as a small tobacco business. Since then, it has grown into a powerhouse in the industry, with a diverse portfolio of products ranging from cigarettes to wine to e-cigarettes. And despite the negative connotations surrounding the tobacco industry, MO has managed to consistently reward its investors with generous dividend payments, making it a popular choice for income investors. In fact, MO has been a Dividend Aristocrat - meaning it has increased its dividend payments for at least 25 consecutive years - since 2008. So while you might not want to light up a Marlboro, you might want to consider lighting up your portfolio with some MO stock.
2. VZ Stock
Dividend Yield as 28APR23: 6.71%
YTD Performance: -3.07%
Let's talk about Verizon, aka the OG of phone companies. Verizon Communications Inc. (VZ) is a technology and communications giant that dominates the mobile phone and wireless industry. Known for its reliability and innovative services, VZ has consistently delivered exceptional returns for its investors over the years. With a dividend yield of 6.71% and a steady increase in revenue, it's no surprise that VZ is a popular choice among income investors. In addition, VZ has invested heavily in 5G technology, which is expected to revolutionize the telecommunications industry. With the rapid growth of the Internet of Things (IoT) and the ever-increasing demand for faster and more reliable wireless services, VZ is well-positioned to capitalize on these trends. So, whether you're an income investor looking for steady returns or a growth investor seeking long-term growth potential, VZ is definitely worth considering
3. MMM Stock
Dividend Yield as 28APR23: 5.65%
YTD Performance: -13.74%
Alright, dividend stock enthusiasts! Let's talk about MMM, the multi-industry giant that's been around for over a century. 3M's products are everywhere, from your household items to healthcare and aerospace industries. This company's diversified portfolio makes it a great option for investors who want a bit of stability in their portfolio. Plus, with a long history of consistently increasing their dividend payouts, MMM is considered a dividend aristocrat. And let's not forget their commitment to innovation, as they invest heavily in research and development to bring new products to the market. With MMM's strong brand recognition, diverse product offerings, and commitment to innovation, it's definitely worth considering as a long-term investment.
In recent years, MMM has faced a significant challenge due to a lawsuit involving their earplugs. In 2016, the company paid $9.1 million to settle a whistleblower lawsuit alleging that it knowingly sold defective earplugs to the U.S. military. And in 2018, a federal jury ordered MMM to pay $7.1 million in damages to three military veterans who claimed that the earplugs caused them hearing loss and tinnitus. The company is currently facing thousands of similar lawsuits, and the outcome of these cases could have a significant impact on the company's financial performance and stock price. While MMM has denied any wrongdoing, investors will be closely monitoring the progress of these cases and any potential settlement or damages paid by the company.
Despite the ongoing hearing protection lawsuit, I believe that MMM is still an attractive investment at its current price. MMM has a long history of dividend growth and has been paying dividends for over 100 years. The company has consistently increased its dividend for the past 62 years and has a current dividend yield of around 5.65%. In addition, MMM has a strong balance sheet and a diverse portfolio of products and services across multiple industries. While the outcome of the lawsuit remains uncertain, I believe that MMM has the financial resources to manage any potential settlement or litigation costs. Therefore, I believe that MMM's dividend is stable and the stock remains an attractive long-term investment option.
4. WBA Stock
Dividend Yield as 28APR23: 5.46%
YTD Performance: -5.47%
Well, well, well, look who it is! It's Walgreens Boots Alliance (WBA), one of the leading pharmacy chains in the world. You know what they say, "health is wealth," and WBA is helping us keep both in check. With over 21,000 stores across the globe, these guys have got us covered. And you know what else is great about WBA? Its dividend yield! As of April 2023, the dividend yield for WBA stock stands at around 5.46%. That's some serious cash coming in for investors. Plus, WBA has been aggressively expanding its e-commerce business, which has the potential to drive growth for the company in the long run. So, if you're looking for a stable company with a solid dividend yield, WBA might just be the perfect stock for you
5. IBM Stock
Dividend Yield as 28APR23: 5.26%
YTD Performance: -10.87%
IBM, also known as "Big Blue," is a technology company that has been around for over 100 years. As one of the pioneers in computing, IBM has continued to innovate and adapt to the ever-changing landscape of technology. From its early days of producing punch card tabulating machines, to its current focus on cloud computing and artificial intelligence, IBM has remained a force to be reckoned with in the tech industry. Despite some challenges in recent years, such as declining revenue and a shifting market, IBM has continued to demonstrate its resilience and ability to evolve. With a strong focus on innovation and a diverse portfolio of products and services, IBM remains a compelling investment opportunity for those looking to gain exposure to the technology sector. Plus, with a solid dividend history and a commitment to returning value to shareholders, IBM offers the potential for long-term growth and stability.
6. O Stock
Dividend Yield as 28APR23: 4.89%
YTD Performance: -1.87%
O stock, also known as Realty Income Corporation, is a fun and exciting stock that many investors are talking about. Known for its monthly dividend payments, this real estate investment trust (REIT) specializes in retail and commercial properties. With tenants ranging from convenience stores to movie theaters, O stock offers a diverse portfolio with stable and consistent cash flows. What's even more exciting is that the company has increased its dividend payout for over 50 consecutive years, earning the title of "Dividend Aristocrat". If you're looking for a reliable income stream, O stock is definitely worth considering. Plus, with a portfolio of over 6,500 properties in the United States, Puerto Rico, and the United Kingdom, this REIT has plenty of room for growth. One of the coolest things about O stock is that it allows you to become a landlord without all the headaches that come with actually owning a physical property. Whether you're a coffee lover grabbing a latte from Starbucks, a fitness enthusiast getting your sweat on at 24 Hour Fitness, or a tech junkie checking out the latest gadgets at Best Buy, chances are you've spent time in an O property.
7. INTC Stock
INTC Dividend Yield as 28APR23: 1.62%
YTD Performance: 15.79%
Intel Corporation (INTC) is one of the most recognizable tech companies in the world. From powering laptops and desktops to the chips that run data centers and servers, INTC has a strong hold in the semiconductor industry. But what really sets INTC apart is their commitment to innovation and development of cutting-edge technologies like artificial intelligence and 5G. As the world becomes more connected, INTC is positioning itself to be a key player in the tech revolution. Plus, with a solid dividend yield and a history of increasing payouts, INTC is a great choice for investors who want a mix of growth potential and stability. So if you're looking for a tech stock that can deliver consistent returns, INTC is definitely one to keep on your radar.
8. C Stock
Dividend Yield as 28APR23: 4.32%
YTD Performance: 3.10%
Citigroup Inc. (C) is a banking and financial services corporation that has been around for over 200 years, with a presence in over 100 countries worldwide. The company offers a wide range of financial services to its customers, including consumer banking, credit cards, corporate and investment banking, and wealth management. With a current dividend yield of over 4%, Citigroup is a popular choice for income investors. Despite challenges in the past, Citigroup has been making strides to improve its financial performance, and its stock price has been steadily increasing over the past year. As a global company with a diverse range of services, Citigroup has the potential to continue growing and expanding in the years to come. So if you're looking for a fun and reliable stock to invest in, Citigroup may be a great choice for you!
9. PFE Stock
Dividend Yield as 28APR23: 4.22%
YTD Performance: -24.72%
PFE, or Pfizer Inc., is a pharmaceutical giant with a rich history of innovation and breakthroughs in medicine. The company is responsible for some of the world's most recognizable drugs, including Lipitor and Viagra. PFE's diverse product portfolio and strong financials make it an attractive investment opportunity for those seeking long-term growth and stability. In addition to its core pharmaceuticals business, PFE also has a significant presence in the consumer health and animal health markets. The company's commitment to research and development has kept it at the forefront of the industry, and its pipeline of potential new drugs continues to impress. With a solid dividend yield and a track record of consistently increasing payouts, PFE is a great choice for income investors as well. Overall, PFE's combination of stability, growth potential, and reliable dividends make it a top pick in the healthcare.
10. ABBV Stock
Dividend Yield as 28APR23: 3.92%
YTD Performance: -7.11%
ABBV is a pharmaceutical company that specializes in the development and production of drugs for serious health conditions. With a commitment to innovation, ABBV's research and development team has a pipeline of promising drugs in various stages of development, providing hope to patients worldwide. ABBV's focus on innovation has also led to a strong financial performance, with consistent revenue growth and solid earnings. In addition, the company's dividend history is impressive, making it a popular choice for income-seeking investors. Despite the challenges faced by the healthcare industry, ABBV has continued to show resilience and adaptability, making it an attractive investment option for those looking for stability and long-term growth. Overall, ABBV is a company with a strong track record of success and a promising future ahead.
In conclusion, investing in high dividend stocks is a great way to generate passive income and build long-term wealth. The top recommended high yield dividend stocks for May 2023 include MO, VZ, MMM, WBA, IBM, O, INTC, C, PFE, and ABBV. These companies have a track record of stable dividends and strong financials, making them attractive for income investors. However, it's important to do your own research and assess your risk tolerance before making any investment decisions. If you want to learn more about dividend investing or other personal finance topics, be sure to check out my other resources. Remember, investing in the stock market is a marathon, not a sprint. Stay patient and disciplined, and your investments will grow over time.