Stocks That Pay Dividends In May: Cash In Now!

Best May Dividend Paying Stocks

Spring is right around the corner, so it’s time to think about stocks that pay dividends in May.

Interest rates are very low. And, may stay low for many months. What is an income investor to do?

The simple answer is to invest in dividend growth stocks. For the reliable and growing income they provide.

So, to help boost your income. And, fill out your dividend calendar. I want to share 10 of my favorite stocks that pay dividends in May.

They represent some of the best time-tested dividend stocks. For anyone seeking a steady stream of dividends.

Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.

10 Stocks That Pay Dividends In May

Here is today’s list of stocks that pay dividends in May.

Abbott Labs
AbbVie
Apple
AT&T
Clorox
Hormel Foods
Paychex
Procter & Gamble
Realty Income
Verizon

Looking for more dividend stock ideas? Then check out the Simply Investing Report for dozens of excellent dividend stock recommendations.

I’ve been a subscriber for many months. And love the concise analysis and monthly dividend stock recommendations from the interactive platform that Simply Investing provides.

But, back to my research…

The Research On May Dividend Stocks

research on stocks that pay dividend in May

Each of today’s stocks that pay dividends in May is 1 of 40 holdings in our model stock portfolio. I maintain it on this site for readers like you. Also, I own shares in each of these companies in my account.

Since I’m invested in these stocks, I’ve done more research. So you don’t have to.

Do any of these stocks interest you for investment purposes? Then, just follow the link I have included for a complete dividend stock analysis and review.

On the other hand, never forget to think and invest for yourself. After all, it’s your money! And no one knows your investment objectives better than you.

But, by looking at any or all of the stocks reviewed. You will learn if 1 or more are a good fit for your investment strategy. And meet your specific investing goals.

For today, I will just include just a few facts and metrics for each May dividend payer.

Furthermore, I get all of my latest dividend metrics plus dividend stock recommendations from Simply Investing.

Thus, here is what we will use in today’s…

Company name
Stock symbol
Dividend yield
Dividend payout ratio
20-year average dividend growth rate (if applicable)
The year dividend increases began
Status as a Dividend King, Aristocrat, or Achiever
The approximate ex-dividend date for the May dividend
Other months the stock pays dividends
Tips on the company and its stock that come to my mind

Note that the metrics will be as of the date of publication. So be sure to check for any changes.

Most importantly, the dividend yield is one critical metric that can change quickly.

Because dividend yields have an inverse relationship with a company’s stock price. And we all have experienced how quickly stock prices can change.

Need your dividends sooner? Then, check out these stocks that pay dividends in April.

And Before You Invest For May Dividends…

Never invest just because a stock pays its dividend at a certain time. It is far more important to buy stocks with safe dividends regardless of when they pay.

Furthermore, it is important to do your stock research. Because investing has a risk of loss.

So, make smart investments and manage your money wisely. I use Personal Capital for managing all of my spending and investments online in 1 place.

Next up, is a brief review of each of the 10 stocks that pay dividends in May.

Abbott Labs

Stock symbol: ABT
Dividend yield: 1.6%
Dividend payout ratio: 48%
20-year average dividend growth rate: 9.7%
Increased dividend annually since 1973
Dividend status list: Dividend Aristocrat
The ex-dividend date for May dividend: Mid-April
Pays dividends in February, May, August, and November

Abbott is a global health care company. And has been in business for more than 125 years.

The company’s business lines are focused on 4 areas. Those areas are diagnostic tests, medical devices, generic pharmaceuticals, and nutritional products.

Abbott spun off its branded pharmaceutical products division in 2013. Into a separate publicly traded company. As it so happens, that company (AbbVie) is our next stock that pays dividends in February.

AbbVie

Stock symbol: ABBV
Dividend yield: 3.8%
Dividend payout ratio: 88%
Increased dividend annually since 2013
Dividend status list: Not yet, but soon to be Dividend Achiever
The ex-dividend date for May dividend: Mid-April
Pays dividends in February, May, August, and November

AbbVie has over 100 years of operating history. In the pharmaceutical sector, as part of Abbott. Plus the more recent years as a stand-alone company.

Since its inception, this company has rewarded shareholders with rapid dividend growth. And it’s just a matter of time before AbbVie becomes a Dividend Achiever.

Apple

Stock symbol: AAPL
Dividend yield: .5%
Dividend payout ratio: 15%
20-year average dividend growth rate: 4.3%
Increased dividend annually since 2013
Dividend status list: Not yet, but soon to be Dividend Achiever
The ex-dividend date for May dividend: Early-May
Pays dividends in February, May, August, and November

Headquartered in Cupertino, California, Apple is most well-known for the iPhone.

With such a low dividend yield, some might argue that Apple is not a good dividend stock. On the other hand, the dividend yield is so low because the stock price has increased rapidly.

As a result, Apple stock has made for excellent long-term total returns. Not just dividend income.

AT&T

From a low dividend yield to a high one. Yet another May dividend payer, AT&T.

Stock symbol: T
Dividend yield: 8.8%
Dividend payout ratio: 75%
20-year average dividend growth rate: 4%
The ex-dividend date for May dividend: Early-April
Pays dividends in February, May, August, and November

AT&T is a world leader in communications, media, entertainment, and technology. Although the media and entertainment businesses are to be spun off.

But the stock market has not rewarded AT&T’s shares in recent months. Pushing down the price. And increasing the dividend yield.

So, when looking for high-income AT&T stock may be one to consider.

Clorox

Stock symbol: CLX
Dividend yield: 3.2%
Dividend payout ratio: 78%
20-year average dividend growth rate: 8.4%
Increased dividend annually since 1978
Dividend status list: Dividend Aristocrat
The ex-dividend date for May dividend: Late-April
Pays dividends in February, May, August, and November

The Clorox Company is a leading manufacturer and marketer of consumer products. And owns some very trusted and recognized brands in the household products and food and beverage categories.

In 2020, Clorox appointed a new CEO. Her name is Linda Rendle.

Ms. Rendle is one of the youngest CEOs of a large publicly-traded company. But has many years of experience in the consumer goods industry.

Clorox is another Dividend Aristocrat. One that has benefited recently from our desire to stay at home. And keep our homes clean.

So pull out that bottle of Clorox Clean-Up. Clean your countertops. And collect your Clorox dividends.

Hormel Foods

Next up, Hormel. One of the best stocks that pay dividends. And the first of 2 Dividend Kings on our list.

Stock symbol: HRL
Dividend yield: 2.2%
Dividend payout ratio: 63%
20-year average dividend growth rate: 13%
Increased dividend annually since 1967
Dividend status list: Dividend King
The ex-dividend date for May dividend: Early-April
Pays dividends in February, May, August, and November

Hormel Foods is a Fortune 500 company. They manufacture and market high-quality, brand-name food, and meat products.

Their brands number more than 50. Chances are you have enjoyed one or more of their products as part of a meal or snack.

Now they also own the Planters snack business. To add to their stable of well-known brands.

Furthermore, Hormel has a long history of paying dividends. And, typically increases the dividend by a substantial amount each year.

Paychex

Stock symbol: PAYX
Dividend yield: 2.2%
Dividend payout ratio: 75%
20-year average dividend growth rate: 14.3%
The ex-dividend date for May dividend: Mid-May
Pays dividends in February, May, August, and November

Paychex is a leading provider of integrated human capital management (HCM) solutions. Their services include payroll, benefits, human resources, and insurance. Furthermore, Paychex specializes in small to mid-sized businesses.

The company has become known for increasing its dividend rapidly in recent years. But dividend growth temporarily slowed.

Why so? Because of the global recession caused by the pandemic. And the short-term rise in unemployment.

Fortunately, once the economy picked up. Dividend growth from Paychex resumed.

Procter & Gamble (P&G)

Stock symbol: PG
Dividend yield: 2.2%
Dividend payout ratio: 61%
20-year average dividend growth rate: 8%
Increased dividend annually since 1957
Dividend status list: Dividend King
The ex-dividend date for May dividend: Mid-April
Pays dividends in February, May, August, and November

Like Clorox, Procter & Gamble is a branded consumer goods company. Think Tide detergent and Bounty paper towels.

And another business that has benefited by our increased time spent at home. Also, consumers trend back to tried and true brands that they know and trust.

Dividend growth has slowed at times. But there is no arguing about P&G’s place as a good dividend stock. After all, P&G is a Dividend King.

Verizon

Next, is the 2^nd telecommunications firm on today’s list of stocks that pay dividends in February.

It is Verizon…

Stock symbol: VZ
Dividend yield: 4.8%
Dividend payout ratio: 48%
20-year average dividend growth rate: 3.3%
Increased dividend annually since 2005
Dividend status list: Dividend Achiever
The ex-dividend date for May dividend: Early-April
Pays dividends in February, May, August, and November

Verizon’s portfolio of investments, assets, and services makes it one of the world’s leading providers of communications, information, and entertainment products.

The stock is known for slow, but steady dividend growth. And a higher than average dividend yield.

Verizon is a popular holding for many dividend stock investors. For the steady dividend income that it provides.

Finally, Verizon is expected to be one of the leaders in the rollout of 5G networks. The company spent billions of dollars for access to the 5G spectrum.

Realty Income

Last, but not least, let’s move into the real estate sector. Realty Income is one of the most consistent dividend-paying stocks.

Stock symbol: O
Dividend yield: 4.5%
Dividend payout ratio: 85%
20-year average dividend growth rate: 4.6%
Increased dividend annually since 1994
Dividend status list: Dividend Aristocrat
The ex-dividend date for May dividend: Late-April
Pays dividends: A monthly dividend stock

Realty Income owns and rents out commercial properties. Most importantly Realty Income is known as the Monthly Dividend Company.

Yes. The company pays dividends in May. But it is one of the relatively few high-quality stocks that pay dividends monthly.

So, if you want to regularly make money from dividends. Then, Realty Income is a good dividend stock to consider.

Okay. That concludes my review of 10 stocks that pay dividends in May.

Looking to increase your May dividends? Now you know some good stocks that pay dividends in May.

This group contains Dividend Kings, Dividend Aristocrats, and Dividend Achievers. Plus, a couple of soon-to-be Dividend Achievers.

Set them up in an IRA from M1 Finance. And let the dividends roll in.

Next, let’s cover the dividend metrics I highlighted for each of these stocks…

The Metrics For These May Dividend Payers

I’d like to review the dividend measures that I highlighted for each company in more detail. Because it’s always a good idea to know how dividends and dividend investing works.

Dividend Yield On Stocks That Pay Dividends In May

The dividend yield is a company’s annual dividend rate divided by the stock price per share.

Let’s use XYZ Company as an example. I will assume that XYZ consistently follows a quarterly dividend payment pattern. And until they announce otherwise, XYZ will pay a 25 cent per share dividend every 3 months into the future.

The annual dividend rate is, therefore, $1 per share. Calculated as 4 quarterly dividends per year multiplied by 25 cents.

And let’s say XYZ stock is trading at $20 per share. So, we have a dividend yield of $1 annual dividend per share divided by $20. Or, a 5% dividend yield. That’s how dividends function as it relates to the dividend yield.

But realize, dividend yields change every day. Because they have an inverse relationship with a stock’s price.

So, as a stock price rises. Its dividend yield falls. And, vice-versa.

Dividend Payout Ratio For Stocks Paying Dividends In May

A company’s dividend payout ratio tells us a lot. First of all, it tells us how much of a company’s financial resources are being paid out to shareholders as dividends.

Furthermore, the dividend payout ratio gives us clues about current dividend safety. And future dividend payment capacity.

You can look up the dividend payout ratios on the internet. But I prefer using a company’s financial statements.

Finally, I look at dividend payout ratios in 2 ways. First, dividends per share versus earnings per share.

But the problem with using earnings is the accounting rules. For any given time and for certain industries they can be confusing. And sometimes lead to a poor assessment of a company’s dividend.

So, I also check the dividends paid against free cash flow. Or, funds from operations (FFO) in the case of real estate investment trusts.

Since our dividends are paid in cash and come from the company’s funds. Furthermore, cash flow is not influenced by accounting rules.

In either case, a lower dividend payout ratio is better. It indicates the company has ample room to raise the dividend in the coming years. Or, withstand an earnings drop without having to reduce the dividend.

For each of the May dividend payers in this article. I noted the dividend payout ratio that makes the most sense for the company.

In other words, either the earnings-based or cash-based dividend payout ratio. The one that best reflects the company’s dividend payment capacity, in my opinion.

Dividend History And Dividend Growth For These May Dividend Stocks

Looking at a company’s dividend history and growth is important. And today’s list is full of growth stocks that pay dividends. Also known as dividend growth stocks.

First of all, the 20-year annual dividend growth rate. I get this from the Simply Investing Report & Analysis Platform. The metric tells us how fast the dividend has been growing.

Then I find out, how many consecutive years the company has raised its dividend. That tells me the company’s status: King, Aristocrat, Achiever, or none of the above. I have more on these dividend stock lists in the next section.

In either case, faster growth rates and longer dividend increase histories are usually better. They indicate the growth and sustainability of a company’s business model. And a company’s commitment to paying regular dividends to shareholders.

Dividend Kings, Aristocrats, And Achievers That Pay May Dividends

Some May dividends come from Dividend Kings

These lists of dividend stocks are great places to look for solid dividend-paying companies. So, what are they?

First of all, we have the Dividends Kings. They are companies that have paid and increased their dividends for at least 50 years in a row.

Furthermore, there are Dividend Aristocrats. They represent companies trading in the S&P 500 stock index. Also, they have paid and increased their dividends for at least 25 consecutive years.

Finally, we have the list of Dividend Achievers. They are stocks that have raised dividends for at least 10 years in a row.

Ex-Dividend Date For Stocks That Pay Dividends In May

To receive a stock’s May dividend, the timing of your investment purchase must be BEFORE the ex-dividend date.

Typically, a stock’s ex-dividend date falls in the month before it pays dividends. But, the timing of each company’s ex-dividend date is different. And the date can change with every dividend that is declared.

So be sure to check the company’s investor relations website for the exact date. But I just wanted to give you a warning.

In most cases, be prepared to make your investment(s) no later than the first half of April. That is if you want to make money from dividends in May.

Are you running late for May? Then check out this list of stocks that pay dividends in June.

Regardless, as I went through each of these stocks paying dividends in May, I noted the approximate timing of the ex-dividend date. Just to give you an idea.

In a few cases, you will see the stocks going ex-dividend in early to mid-May. That gives you a little more time to make your investment if you choose to.

Finally, be sure to trade your stocks for free. I use the Webull app on my phone for quotes, research, and fast, free stock trades.

Stocks That Pay Dividends In February, May, August, November

Of course, every stock on the list is a May dividend payer. Furthermore, most of the listed stocks pay dividends in February, August, and November also. They are stocks that pay dividends quarterly each year, starting in February.

Finally, there is 1 stock in today’s list that does not follow this dividend payment pattern. It is Realty Income. As I previously indicated, Realty Income pays dividends monthly.

One last thing before I wrap up…

Finding Stocks That Pay Dividends

Are you looking for more stocks paying dividends at different times? Or, fit other investment objectives? To improve the worth of your dividend portfolio.

No worries. Here are some places I look for and find good stocks that pay dividends:

Lists of the best dividend growth stocks
Dividend rich industries and sectors
Specialty dividend investing websites
Dividend focused mutual fund and ETF holdings
Investment newsletters
Products and services you use regularly
Dividend stock screeners

Summary: Stocks That Pay Dividends In May

wrap up: stocks that pay dividends in May

Some investors contend that dividends are not important. But, I could not disagree more. Because historical research indicates that about 40% of stock market returns come from dividends.

So, here is a summary list of stocks that pay dividends in May. If you want more dividends payable in May credited to your brokerage account, check 1 or more of these companies out.

Abbott Labs
AbbVie
Apple
AT&T
Clorox
Hormel Foods
Paychex
Procter & Gamble
Realty Income
Verizon

Then, at a minimum, review these dividends metrics before you invest.

Yield
Payout ratio
Growth rate
History
Ex-dividend date

It’s also a good idea to check on a stock’s valuation. I like to use the Gordon Growth Model for this purpose.

My Favorite Dividend Investing & Finance Resources

Disclosure & Disclaimer

Author Bio, Disclosure, & Disclaimer: Please join me (Tom) as I try to achieve my goals, find my next place to live, and make the most of my money. But understand, I am not a licensed investment adviser, financial adviser, real estate agent, or tax professional. I’m a 50-something-year-old guy, CPA, retired finance professional, and part-time business school teacher with 40+ years of DIY investing experience. I’m just here because I enjoy sharing my findings and research on important topics. However, nothing published on this site should be considered individual investment advice, financial guidance, or tax counsel. Because this website’s only purpose is general information & entertainment. As a result, neither I nor Dividends Diversify can be held liable for any losses suffered by any party because of the information published on this blog. Finally, all written content is the property of Dividends Diversify LLC. Unauthorized publication elsewhere is strictly prohibited.

Best May Dividend Paying Stocks

10 Stocks That Pay Dividends In May

The Research On May Dividend Stocks

And Before You Invest For May Dividends…

Abbott Labs

AbbVie

Apple

AT&T

Clorox

Hormel Foods

Paychex

Procter & Gamble (P&G)

Verizon

Realty Income

The Metrics For These May Dividend Payers

Dividend Yield On Stocks That Pay Dividends In May

Dividend Payout Ratio For Stocks Paying Dividends In May

Dividend History And Dividend Growth For These May Dividend Stocks

Dividend Kings, Aristocrats, And Achievers That Pay May Dividends

Ex-Dividend Date For Stocks That Pay Dividends In May

Stocks That Pay Dividends In February, May, August, November

Finding Stocks That Pay Dividends

Summary: Stocks That Pay Dividends In May

Further Reading About Stocks That Pay Dividends

My Favorite Dividend Investing & Finance Resources

Disclosure & Disclaimer

10 Stocks That Pay Dividends In May