5 Best May Dividend Stocks To Buy

In this article, we discuss 5 best May dividend stocks to buy. If you want to read our detailed analysis of dividend stocks and their performance in the past, go directly to read 10 Best May Dividend Stocks To Buy. 

5. ALLETE, Inc. (NYSE:ALE)

Ex-Dividend Date: May 12
Dividend Yield as of April 27: 4.36%

ALLETE, Inc. (NYSE:ALE) is an American company that requires and manages clean and renewable energy products. In April, Sidoti upgraded the stock to Buy with a $74 price target, appreciating the company’s overall performance over the years.

ALLETE, Inc. (NYSE:ALE) is one of the best dividend stocks on our list as it has a 73-year run of making uninterrupted dividend payments to shareholders. The stock will go ex-dividend on May 12. It currently pays a quarterly dividend of $0.6775 per share and has a dividend yield of 4.36%, as of April 27.

As of the close of Q4 2022, 18 hedge funds tracked by Insider Monkey reported having stakes in ALLETE, Inc. (NYSE:ALE), compared with 19 in the previous quarter. These stakes have a collective value of over $44 million. Point72 Asset Management was the company’s leading stakeholder in Q4.

4. Aflac Incorporated (NYSE:AFL)

Ex-Dividend Date: May 16
Dividend Yield as of April 27: 2.42%

Aflac Incorporated (NYSE:AFL) is a Georgia-based insurance company that offers related services to its consumers. The stock will be going ex-dividend on May 16. It currently pays a quarterly dividend of $0.42 per share and has a dividend yield of 2.42%, as of April 27. It is one of the best dividend stocks on our list as it maintains a 41-year streak of consistent dividend growth.

Wells Fargo maintained an Equal Weight rating on Aflac Incorporated (NYSE:AFL) in April with a $73 price target. The firm gave a positive stance on the company’s performance this year.

As per Insider Monkey’s database for Q4 2022, 32 hedge funds owned stakes in Aflac Incorporated (NYSE:AFL), compared with 34 in the previous quarter. These stakes have a consolidated value of over $620.5 million.

3. Cullen/Frost Bankers, Inc. (NYSE:CFR)

Ex-Dividend Date: May 30
Dividend Yield as of April 27: 2.42%

A Texas-based commercial banking company, Cullen/Frost Bankers, Inc. (NYSE:CFR) is next on our list of the best dividend stocks. JPMorgan maintained an Overweight rating on the stock in April with a $123 price target, expressing concerns regarding the banking sector in the current environment.

Cullen/Frost Bankers, Inc. (NYSE:CFR) currently pays a quarterly dividend of $0.87 per share and has a dividend yield of 2.42%, as of April 27. The company has been raising its dividends consistently for the past 29 years, which makes it one of the best dividend stocks on our list. It will be going ex-dividend on May 30.

At the end of December 2022, 28 hedge funds tracked by Insider Monkey reported having stakes in Cullen/Frost Bankers, Inc. (NYSE:CFR), up from 25 in the preceding quarter. These stakes have a collective value of roughly $220 million.

Aristotle Capital Management, LLC mentioned Cullen/Frost Bankers, Inc. (NYSE:CFR) in its Q3 2022 investor letter. Here is what the firm has to say:

“Cullen/Frost Bankers, Inc. (NYSE:CFR), the Texas‐based bank, was a top contributor for the quarter. The regional bank reported its fifth straight quarter of zero provisioning costs, and its net interest income grew 16% sequentially. Due to its relatively low loan‐to‐deposit ratio, higher core‐deposit base and mix of floating‐rate loans relative to peers, we believe Cullen/Frost has been well positioned to benefit when interest rates increase. The bank is continuing to execute on its expansions in Houston and Dallas—a catalyst for the business—exceeding its loan and deposit growth goals in each of these markets. While the Dallas expansion is still in its early stages, we expect it could be even more attractive than Houston given Dallas’s diverse middle‐market commercial client base. Management has also confirmed it will be moving forward on plans to both originate and service mortgage loans, with anticipation of a pilot program launch by the end of 2022. This should serve to further diversify its loan book. Lastly, with its operations solely in Texas, Cullen/Frost prides itself on its relationship‐based approach to banking and strong customerloyalty. Thisis, in our opinion, an important competitive advantage and a differentiator versus larger peers that have a national presence. As such, the bank has continued to see deposits grow and has not yet faced the same deposit pressure seen by many peers—a sign of the relationships that Cullen/Frost has built.”

2. Lockheed Martin Corporation (NYSE:LMT)

Ex-Dividend Date: May 31
Dividend Yield as of April 27: 2.58%

Lockheed Martin Corporation (NYSE:LMT) is an American aerospace company that deals in arms, defense, and information security. On April 26, the company declared a quarterly dividend of $3.00 per share, which was in line with its previous dividend. The company is one of the best dividend stocks on our list as it maintains a 20-year streak of consistent dividend growth. The stock’s dividend yield came in at 2.58% on April 27 and will trade ex-dividend on May 31.

At the end of Q4 2022, 53 hedge funds tracked by Insider Monkey owned stakes in Lockheed Martin Corporation (NYSE:LMT), the same as in the previous quarter. The collective value of these stakes is over $2.13 billion.

Vltava Fund mentioned Lockheed Martin Corporation (NYSE:LMT) in its Q3 2022 investor letter. Here is what the firm has to say:

“LMT is one of the world’s largest aerospace and defence companies. The war in Ukraine has reminded investors and the wider public just how important these companies are. The aerospace and defence industry in the USA is an established oligopoly. This means that a few large firms play a dominant role. While collectively they comprise an oligopoly, individually they often have monopoly positions in particular narrower segments. Their main counterparty is the US government, a key customer in what is known as a monopsonist position. This is a rather unusual situation, but one that is very advantageous for companies such as LMT. (Click here to see the full text)

1. McKesson Corporation (NYSE:MCK)

Ex-Dividend Date: May 31
Dividend Yield as of April 27: 0.59%

A New York-based healthcare company, McKesson Corporation (NYSE:MCK) tops our list of the best dividend stocks. The company currently pays a quarterly dividend of $0.54 per share and has a dividend yield of 0.59%, as of April 27. It maintains a six-year streak of consistent dividend growth.

As per Insider Monkey’s Q4 2022 database, 54 hedge funds owned stakes in McKesson Corporation (NYSE:MCK), up from 51 in the preceding quarter. These stakes have a collective value of over $4.27 billion.

Broyhill Asset Management mentioned McKesson Corporation (NYSE:MCK) in its Q4 2022 investor letter. Here is what the firm has to say:

“Shares of McKesson Corporation (NYSE:MCK) gained 50% for the twelve months ending December 2022, as opioid-related litigation concerns, which weighed on the stock for years, took a back seat to strong operating performance. When we first established the position in 2018, we explained that, “Although headlines remind us daily of growing threats to the business, the actual probability of this business dramatically changing in the next five years is much lower than the perceived probability. We are simply betting that the future might not be as bad as the price suggests.”

Consensus FY22 and FY23 EPS estimates at the time were around $17 – $18 per share. The company reported ~ $24 in earnings in FY22, and is on pace for $26 in FY23, even as consensus estimates for the broader market were repeatedly revised lower. We continued to trim our position throughout the year as shares rerated higher from ~ 8x earnings in FY18 to ~ 16x earnings at recent highs.”

You can also take a look at 10 Best Asset Management Stocks To Buy and 14 Best Income Stocks To Invest In

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