15 Stocks that Pay Dividends in May: Cash in Now

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Best May Dividend Paying Stocks

Spring is here, so it’s time to consider stocks that pay dividends in May.

Interest rates are on the move, and the stock market is volatile. So, what is a dividend income investor to do?

The simple answer is to invest for the long term in dividend-growth stocks. Do so for the reliable and growing income these investments provide.

So, to help boost your income and fill out your dividend calendar. I want to share 10 plus 5 of my favorite stocks that pay dividends in May.

They represent 15 of the best time-tested dividend stocks for anyone seeking a steady stream of dividends.

10 Stocks That Pay Dividends In May

Here is today’s first list, starting with ten stocks that pay dividends in May.

Abbott Labs (ABT)
AbbVie (ABBV)
Apple (AAPL)
AT&T (T)
Clorox (CLX)
Hormel Foods (HRL)
Paychex (PAYX)
Procter & Gamble (PG)
Realty Income (O)
Verizon (VZ)

However, stick with me until the end of this article because I will add five more May divided payers to the list for 15.

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

More Ways To Find May Dividends

Still not enough stocks? Are you looking for more dividend ideas?

If yes, check out the Simply Investing Report for dozens of excellent dividend stock recommendations.

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

Do you want to be a better dividend investor? If yes, check out Simply Investing’s comprehensive course covering:

Passive Dividend Income Investing

But, back to my research…

The Research On May Dividend Stocks

research on stocks that pay dividend in May

Each of today’s first ten 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, follow my links below 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 one or more is a good fit for your investment strategy also if they meet your specific investing goals.

The Metrics For These May Dividend Payers

Today, I will 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 today…

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 most recent update to this article. So be sure to check with your broker or your other favorite sources for any changes.

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

Because dividend yields run inverse to a company’s stock price, most importantly, we all have experienced how quickly stock prices can change.

Do you 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. Buying stocks with safe, growing dividends is far more important regardless of when they pay.

Furthermore, it is important to do your stock research because investing has risks.

What risks? Simply put, the risk of losing money.

So, make smart investments and manage your money wisely. To do so, I use Empower.

Empower is an excellent app for managing your budget, spending, and investments consolidated in one place online. So, why make money management more difficult than it needs to be?

You can learn more about Empower here.

Okay. Next is a brief review of each of the first ten stocks that pay dividends in May.

1. Abbott Labs

Stock symbol: ABT
Dividend yield: 2.1%
Dividend payout ratio: 52%
20-year average dividend growth rate: 9.6%
Increased dividend annually since 1973
Dividend status list: Dividend King
The ex-dividend date for May dividend: Mid-April
Pays dividends in February, May, August, and November

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

The company’s business lines are focused on 4 areas. Specifically 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 May.

2. AbbVie

Stock symbol: ABBV
Dividend yield: 3.9%
Dividend payout ratio: 89%
Increased dividend annually since 2013
Dividend status list: 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, management has rewarded shareholders with rapid dividend growth making the company a Dividend Achiever.

3. Apple

Stock symbol: AAPL
Dividend yield: .6%
Dividend payout ratio: 16%
Recent year’s annual dividend growth rate: 8%
Increased dividend annually since 2013
Dividend status list: 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 low partly because the stock price has increased rapidly.

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

4. AT&T

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

Stock symbol: T
Dividend yield: 6%
Dividend payout ratio: Too high!
20-year dividend growth rate: Recent dividend cut
The ex-dividend date for May dividend: Mid-April
Pays dividends in February, May, August, and November

AT&T is a world leader in communications and technology. The company has spun off its legacy media and entertainment businesses to WarnerMedia.

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

So, when looking for high-income AT&T stock may be one to consider. However, given the excessive payout ratio and recent dividend cut, I’m not a big fan of this stock.

Yes, I still hold a small position in T. But I have reduced the size of that position in recent years.

5. Clorox

Stock symbol: CLX
Dividend yield: 3%
Dividend payout ratio: 115%
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 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. Yes, the dividend payout ratio is higher than I prefer. However, when you look at cash flow, Clorox has plenty to cover the current dividend.

The company has benefited from trends for spending increased time at home. And keeping our homes clean.

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

6. Hormel Foods

Next up, Hormel. One of the best stocks that pay dividends. And the second of 3 Dividend Kings on today’s list.

Stock symbol: HRL
Dividend yield: 2.9%
Dividend payout ratio: 61%
20-year average dividend growth rate: 12.9%
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. The company manufactures and markets 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.

Furthermore, they purchased Planters snack business adding to their stable of well-known brands.

Finally, Hormel has a long history of paying dividends. And typically increases the dividend substantially yearly while keeping the dividend payout ratio reasonable.

7. Paychex

Stock symbol: PAYX
Dividend yield: 3%
Dividend payout ratio: 78%
20-year average dividend growth rate: 14.8%
The ex-dividend date for May dividend: Mid-May
Pays dividends in February, May, August, and November

Paychex is a leading integrated human capital management (HCM) solutions provider. Their services include payroll, employee 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.

However, 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.

8. Procter & Gamble (P&G)

Stock symbol: PG
Dividend yield: 2.5%
Dividend payout ratio: 64%
20-year average dividend growth rate: 8.1%
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 operating in the consumer staples sector. Think Tide detergent and Bounty paper towels.

Like Clorox, P&G benefited from the increased time spent at home during the pandemic. Also, consumers return to tried and true brands 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.

9. Verizon

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

It is Verizon…

Stock symbol: VZ
Dividend yield: 7%
Dividend payout ratio: 51%
20-year average dividend growth rate: 3.4%
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. Along with AT&T, the company spent billions of dollars on access to the 5G spectrum.

10. Realty Income

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

Stock symbol: O
Dividend yield: 5.2%
Dividend payout ratio: 78%*
20-year average dividend growth rate: 4.8%
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

* Based on adjusted funds from operations (AFFO) reported by the company.

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, 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 May dividend payers.

This group contains Dividend Kings, Dividend Aristocrats, and Dividend Achievers.

Next, let’s discuss the dividend metrics I highlighted for each stock. Most successful dividend investors follow their stock’s dividend metrics, and I am no exception.

The Metrics For These May Dividend Payers

Thus, I shall detail the dividend measures I highlighted for each company. Knowing how dividends, dividend metrics, and dividend investing work is always a good idea.

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 three 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 daily 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, it tells us how much of a company’s financial resources are paid 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. At any given time and in 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.

Why?

Because dividends are paid in cash and come from the company’s available funds known as cash flow, better yet, cash flow is not influenced by accounting rules. In other words, cash is cash!

Regardless, a lower dividend payout ratio is usually better. It indicates the company has ample room to increase dividends 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, there is 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 consecutive years.

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 ten 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 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 check the company’s investor relations website for the exact date. 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 more time to make your investment if you choose to.

Better yet, be a buy-and-hold dividend investor. Then you will earn every future dividend your companies declare and pay without lifting a finger. That’s why dividends are referred to as passive income.

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 today’s list is a May dividend payer. Furthermore, most of these stocks also pay dividends in February, August, and November. They are stocks that pay dividends quarterly each year, starting in February.

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

Okay, perhaps you want some additional May dividend stock ideas. And you want them right now.

Fortunately, at the beginning of this article, I promised five more of the best companies that pay dividends in May.

So, it’s only fitting that I deliver on that promise before wrapping up.

5 More Stocks For May Dividends

Unlike the first ten stocks for May dividends, I own none of these five companies. However, each one has its own story as to why not.

First, here are the 5 additional May dividend stocks:

Air Products & Chemicals (APD)
Caterpillar (CAT)
Colgate-Palmolive (CL)
General Dynamics (GD)
Lowe’s Companies (LOW)

Second, here are a few comments about my history and thoughts regarding these good May dividend payers. Most importantly, I saw a theme develop as I wrote this section.

Specifically, you nor I can own every dividend stock. So, hard choices are required to keep the number of holdings manageable in my portfolio and yours.

11. Air Products & Chemicals

I have held a small position in APD in the past. However, I sold it to reduce the number of stocks I owned.

It is hard to go wrong with this Dividend Aristocrat stock that is slowly but surely pushing to become a Dividend King.

12. Caterpillar

On the other hand, I have never owned CAT. But my Dad has held the stock for decades.

Good company. I probably missed a solid long-term investment opportunity here.

Maybe I will inherit my Dad’s shares someday? I don’t know. But I better be a good boy to improve my chances!

13. Colgate-Palmolive

Years back, I owned Colgate-Palmolive. However, I decided to consolidate that position into other consumer staples companies – specifically, Procter & Gamble and Clorox.

Colgate-Palmolive is a Dividend King with more than six decades of annual dividend growth (and counting).

14. General Dynamics

I’ve never owned General Dynamics. However, I like having aerospace and defense sector representation in my dividend portfolio.

Instead, I own Lockheed Martin (LMT) and Raytheon (RTX).

15. Lowe’s

Lowe’s is another good stock with a rich dividend history. However, I choose to invest in the company’s competitor, Home Depot (HD).

Okay. There are your additional five stocks that have dividends in May.

But I have one last thing before I wrap up…

Finding Stocks That Pay Dividends

Are you looking for more stocks paying dividends at different times? Or do you need options that fit other investment objectives to improve the worth of your dividend portfolio?

Yes. I have given you 15 ideas today. However, some investors prefer to find dividend stocks on their own.

So, 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 and I use regularly
Dividend stock screeners

Okay. That’s all I have for today.

So, please let me conclude with some final thoughts and a summary.

Wrap-Up: Stocks That Pay Dividends In May

Some investors contend that dividends are not important. But I could not disagree more.

Why? Because historical research indicates that about 40% of stock market returns come from dividends.

If you want more dividends payable in May credited to your brokerage account, check out one or more of these companies.

For your convenience, here is a summary list of all 15 stocks paying dividends in May that I reviewed today.

Abbott Labs
AbbVie
Air Products & Chemical
Apple
AT&T
Caterpillar
Clorox
Colgate-Palmolive
General Dynamics
Hormel Foods
Lowe’s
Paychex
Procter & Gamble
Realty Income
Verizon

Finally, at a minimum, review these dividend metrics before you invest.

Yield
Payout ratio
Growth rate
History
Ex-dividend date

And check on a stock’s valuation. I like to use the Gordon Growth Model for this purpose.

That’s all for today. Good luck with your investments

My Favorite Dividend Investing & Finance Resources

conclusion of post about best May dividend stocks — The article’s conclusion is indicated on a whiteboard.

Disclosure & Disclaimer

Author Bio: Tom Scott founded the consulting and coaching firm Dividends Diversify, LLC. He leverages his expertise and decades of experience in goal setting, relocation assistance, and investing for long-term wealth to help clients reach their full potential.