In this article, we will take a look at the 10 Best May Dividend Stocks to Buy. 

Investing in dividend stocks sounds straightforward, but it takes more work than it seems. A basic yield is only part of the picture. Investors often need to look deeper to understand how reliable those payouts are and what drives them.

Dividends are usually linked with long-term returns. Some investors, though, try to generate short-term gains through a method known as dividend capture. The idea is simple, which involves buying shares just before a company pays its dividend, then selling them soon after receiving that payment. In doing so, investors aim to collect the dividend and, at times, benefit from a rise in the stock price ahead of the payout.

Over time, analysts have adjusted this strategy in different ways to improve results. Harry Domash discussed a variation of this approach in an interview with MoneyShow. He said the key step is selling the stock just before the ex-dividend date. Stock prices often move higher after a dividend is announced and can continue to rise into the ex-dividend date. On that date, prices may drop. Domash pointed out that instead of waiting to see how the stock reacts, investors should buy shares the day before they go ex-dividend. He also noted that buying the day after the announcement can work. Using this approach, investors may generate average returns of around 3% to 4% per trade.

Given this, we will take a look at some of the best dividend stocks to buy in May.

Our Methodology:

For this list, we selected dividend stocks that will trade ex-dividend in May 2026. The ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts. The stocks are ranked according to their ex-dividend dates.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. NRG Energy, Inc. (NYSE:NRG)

Ex-Dividend Date: May 1

On April 21, Morgan Stanley lowered its price recommendation on NRG Energy, Inc. (NYSE:NRG) to $154 from $157. It reiterated an Equal Weight rating on the shares. The analyst said the firm is updating price targets across Regulated & Diversified Utilities and IPPs in North America under its coverage. In March, utilities outperformed the S&P 500.

During its Q4 2025 earnings call, management shared an updated long-term outlook. Lawrence Coben, CEO & Chairman of the Board, said the company was rolling its outlook forward and continued to target at least 14% annual growth in adjusted EPS through 2030. He added that the projection did not include any additional data center contracts or potential increases in power or capacity pricing.

Bruce Chung, EVP & CFO, reaffirmed the company’s 2026 financial guidance that had been announced earlier in the month. He noted that the guidance included 11 months of earnings from recently acquired generation assets, along with CPower. Based on the midpoints of the reaffirmed ranges, adjusted EBITDA was expected to reach $5.575 billion, adjusted net income to $1.9 billion, adjusted EPS to $8.90 per share, and free cash flow before growth to $3.05 billion.

NRG Energy, Inc. (NYSE:NRG) is an energy and home services company. Its business includes the sale of electricity and natural gas to residential, commercial, industrial, and wholesale customers. It also operates wholesale electric generation and sells smart home products and services.

9. Texas Instruments Incorporated (NASDAQ:TXN)

Ex-Dividend Date: May 5

On April 23, Wolfe Research raised its price recommendation on Texas Instruments Incorporated (NASDAQ:TXN) to $315 from $260. It reiterated an Outperform rating on the shares. The move followed what the analyst described as “strong” Q1 results and Q2 guidance, supported by growth in industrial and data center markets. The analyst also noted that management “was more bullish on pricing than we’ve heard in the past.”

On the same day, Truist Financial raised its price target on TXN to $278 from $225 and maintained a Hold rating. The analyst said the company delivered an excellent Q1 and solid Q2 guidance, with demand expanding beyond AI and data centers into industrial markets. The firm added that trends could improve further for suppliers with greater leverage or those whose margins have not yet recovered.

Texas Instruments Incorporated (NASDAQ:TXN) is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips. Its products serve a range of markets, including industrial, automotive, personal electronics, communications equipment, and enterprise systems.