Top Dividend Stocks for May 2023 (2023)

This month's list of top dividend stocks consists of international shipping companies Frontline PLC (FOR), Genco Shipping & Trading Ltd. (GNK); energy company Berry Corp. (BRIJ); and real estate investment funds Two Harbors Investment Corp. (OF THE) and Ready Capital (RC).

Key learning points

  • Dividend stocks are shares of companies that regularly pay shareholders a percentage of earnings.
  • Dividends are generally paid quarterly, but may be paid semi-annually or annually.
  • The dividend yield is the ratio, expressed as a percentage, that compares the amount of the annual dividend with the share price.
  • The dividend yield changes as the stock price rises and falls.
  • While it is valuable to know the dividend yield, it is important to seek additional information about a company before investing in it.

Companies that pay dividends are generally well established, with stable earnings and a history of returning part to shareholders in the form of cash or additional shares. A practical criterion to measure the sustainability of a companydividingpayments is thedividend payout ratio(DPR), which measures the total dividend divided bygrand income. It tells investors how much of the company's net income is paid out to shareholders in the form of dividends compared to how much the company has left to invest in further growth.

If the ratio is greater than 100% or negative (meaning that net income is negative), the company may be borrowing to pay dividends. In these cases, dividends are at relatively greater risk of being cut. While dividend stocks are known for their regular payouts, the payout can be lowered to save money in tough times.

Dividend stocks, measured by the at the beginning of May, they have increased by 0.8% in the last year compared to the decrease of 0.17% of theRussell 1000 Index.

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Below, we take a look at the top five dividend stocks in theRussell 3000 Indexpuertafuture dividend yield, excluding companies with a negative pay rate or greater than 100%.

These market performance figures and statistics below are as of May 3.

Frontline PLC (FRO)

  • Future dividend yield: 29%
  • Payout Ratio: 0%
  • Precio: $14.89
  • Market Cap: $3.3 billion
  • Total profitability 1 year: 88%

Frontline PLC is a 70-ship crude oil shipping company headquartered in Cyprus. At the end of February, the company reported its highest quarterly net income since the second quarter of 2008, at $240 million, for the fourth quarter of 2022. In addition, Frontline more than doubled its quarterly cash dividend in the fourth quarter to 77 cents. per share. . .

Two Port Investment Corporation (TWEE)

  • Future Dividend Yield: 19%
  • Payout Ratio: 58%
  • Precio: $12.32
  • Market Cap: $1.1 billion
  • Total return 1 year: -28%

Two Harbors Investment Corp. is a real estate investment trust (REIT) that invests in financial assets such asMortgage Backed Securities (MBS). On February 3, the company announced a public offering of 10 million shares for expected total proceeds of $178 million.

  • Future Dividend Yield: 18%
  • Payout Ratio: 73%
  • Precio: $14.20
  • Market Cap: $601 million
  • Total return 1 year: -28%

Genco Shipping & Trading Ltd. operates a shipping company with 44 vessels transporting dry bulk goods internationally. The company declared a quarterly dividend of 15 cents per share for the first quarter. Genco reported lower returns on its marine vessels, resulting in a 31% drop in total revenue in the first quarter.

Berry Corporation (BRY)

  • Future Dividend Yield: 17%
  • Payout Ratio: 44%
  • Precio: $6.67
  • Market Cap: $505 million
  • Total return 1 year: -29%

Berry Corp. is aupstreamEnergy company surveys US oil properties During the first quarter, the company announced a double dividend of 12 cents per share. Berry's revenue nearly tripled compared to the first quarter of 2022 due to profits from the sale of oil and gas derivatives.

Ready Capital Corp. (RC)

  • Future Dividend Yield: 16%
  • Payout Ratio: 97%
  • Precio: $10.28
  • Market Cap: $1.1 billion
  • Total return 1 year: -20%

Listo Capital Corp. is a real estate investment fund that finances commercial loans. The company declared a quarterly dividend of 40 cents per share for the first quarter.On February 27, Ready Capital and Broadmark Realty Capital Inc. (BRMC) entered into an agreement in which Broadmark Realty will merge with Ready Capital, creating a capital base of $2.8 billion.

(Video) Top 4 High Yield Dividend Stocks for May 2023 to Boost Your Portfolio

High dividend yields do not always mean that a company is financially healthy. In addition to the dividend yield, you should also consider the financial health and growth potential of the companies before investing.

3 Reasons Used to Analyze Dividend Stocks

dividend yield: This ratio measures the annual value of dividends received relative to the market value per share of a security. Investors calculate thedividend yielddividing the annual dividend per share by the current share price.

For example, if Company XYZ pays an annual dividend of $10 with a current share price of $100, it has a dividend yield of 10% ($10 / $100 = 10%). Those looking for high-yield stocks can begin their search by looking at issues with a share return above a certain percentage. Keep in mind that there are many other factors besides dividend yield that investors should consider investin a bag.

Dividend Payout Ratio: The DPR measures how much of a company's revenue is paidshareholders. Investors calculate the ratio by dividing the total dividend by the net income.

For example, if Company XYZ reported net income of $50,000 and paid $15,000 in annual dividends, it would have a DRP of 30% ($15,000 / $50,000 = 30%). This means that the company distributes 30% of its profits to shareholders. In general, a company that pays less than 50% of its net profit in dividends is considered stable and has sustainable growth potential.Profitsgrowth.

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Dividend coverage ratio: This ratio measures the number of times a company can pay dividends to its shareholders. Investors calculate the dividend coverage ratio by dividing a company's annual figuresearnings per share (EPS)for the annual dividend per share.

For example, if Company XYZ reports $10 million in net income with a $2 million annual dividend to shareholders, it has a dividend coverage ratio of five times ($10 million/$2 million). Investors generally view a higher dividend coverage ratio as more favorable.

Dividend Stock Benefits

Two main benefits of investing in dividend stocks generate onepassive incomeand dividend reinvestment.

passive income: Companies that pay dividends typically issue them quarterly, creating a reliable stream of passive income for investors to spend at will. Dividends also have the added benefit of offsetting the decline in stock price value.

Dividendherinvestering: Investors can reinvest the dividends received in the company to acquire more shares. This is called adividend reinvestment plan(DROP). By participating in a DRIP, the investor can benefit from thiscompound returns— a long-term wealth-building strategy.

Do your dividend stock research

High yields are just one of many things to consider when investing in dividend stocks. An above-average return can indicate trouble if a troubled company pays large dividends to attract investors.

In addition to the dividend yield, also take a good look at the following data.

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  • payout ratio: A payout rate of 35% to 55% is considered healthy because a company that pays up to half of its earnings as dividends will likely perform well and be a market leader. Importantly, it reinvests much of its profit back into itself for growth.
  • raise the dividend:A strong history of rising dividends is good news, as it indicates that a company has had the financial resources and the desire to continue paying its shareholders through good and bad economic times and to increase the amount it pays out.
  • Reliable sales and profit growth: Over time, the more stable, the better. The occasional erratic result may not attract attention, but anything else could be a sign of a company in trouble.
  • Solid market share and competitive advantages: These can help companies maintain their ability to maintain high performance. Such benefits could beintellectual property, advanced technology, high barriers to entry and a recognized and respected brand.

What is dividend yield?

It is a percentage that represents the income (via dividends) that a company pays to stock investors against the share price. Dividend yield is just one measure that can help investors decide whether a company's stock might be a good addition to their portfolio.wallets.

How does the payout ratio compare to dividend yield?

While the dividend yield compares dividend income to the stock price, the payout rate compares dividend income to the company's profit. In other words, it shows investors how much a company pays them versus how much it keeps for itself. It can give an idea of ​​the income that investors can expect in the future. A payout ratio that is too high, where the company pays investors much more than itreinvertedIn and of itself, it could mean there isn't much room for dividend growth. It can be a sign that a company is in trouble.

Which companies have paid dividends the longest?

The following companies are known to have paid dividends to shareholders for over 100 years:Coca Cola, General Mills, Chubb, Colgate-Palmolive, Proctor & Gamble, Consolidated Edison, Eli Lilly esexxonmobil.

it all comes down to

The dividend yield compares the income a company pays out to shareholders with the price of that share. It is calculated by dividing the amount of the annual dividend (the amount of income paid during a year) by the share price. While a high dividend yield may be attractive, it doesn't necessarily mean a stock is a smart investment.

(Video) 7 Top Dividend Stocks That Pay Me $1,100 Per Month

The dividend yield is a tool for spotting dividend stocks that may be worth owning. A dividend yield that is too high can indicate that a company is struggling. Similarly, companies with extremely high payout ratios can also be a signal to investors.

Before you invest your money, spend some time looking for companies that are financially strong enough to maintain and potentially increase your dividends, and that offer an attractive ongoing supply.dividend yield.


Top Dividend Stocks for May 2023? ›

As dividend stocks are still gaining traction among investors, we have shortlisted some of the best dividend stocks of 2023 in this article. Overall, McDonald's Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and JPMorgan Chase & Co. (NYSE:JPM) are some of the prominent dividend stocks with strong dividend policies.

Which stocks will give dividend in 2023? ›

Dividends Declared
Kokuyo CamlinFinal21-07-2023
Novartis IndiaFinal20-07-2023
46 more rows

What is the best dividend growth stock in 2023? ›

As dividend stocks are still gaining traction among investors, we have shortlisted some of the best dividend stocks of 2023 in this article. Overall, McDonald's Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and JPMorgan Chase & Co. (NYSE:JPM) are some of the prominent dividend stocks with strong dividend policies.

What stock will boom in 2023? ›

Bank of America's Best Growth Stocks of 2023
CompanyForward Sales Growth Next Year
Alphabet (GOOG, GOOGL)+11.8%
Eli Lilly (LLY)+19.4%
Match (MTCH)+13.0%
Progressive (PGR)+10.9%
6 more rows
May 1, 2023

What is the dividend of May 2023? ›

The record date for the same is fixed as 4 May 2023. The total dividend declared for the year stands at Rs 6.5 per share, including the final dividend. At the current price, the total dividend of Rs 6.5 per share for the calendar year 2023 results in a dividend yield of over 6%!

What are the 5 highest dividend paying stocks? ›

Comparison Results
NamePriceAnalyst Price Target
T AT&T$16.31$22.73 (39.36% Upside)
XRX Xerox$14.54$15.33 (5.43% Upside)
IBM International Business Machines$127.26$147.38 (15.81% Upside)
CVX Chevron$155.23$188.94 (21.72% Upside)
5 more rows

What are the top 10 shares to buy 2023? ›

Best Stocks to Buy in India for Long Term in 2023
S.No.Long Term Stocks IndiaIndustry
1.Reliance IndustriesMultinational Conglomerate
2.Tata Consultancy Services (TCS)Information Technology
3.InfosysInformation Technology
4.HDFC BankBanking
1 more row
Apr 24, 2023

What are the three high yielding dividend stocks? ›

For investors less focused on growth, these high-dividend stocks all pay yields above 4.5%.
9 High-Yield Dividend Stocks to Buy.
CompanyYTD total return, which includes dividends, through May 12
Verizon Communications Inc. (VZ)-1.5%
Xerox Holdings Corp. (XRX)-1.4%
Newell Brands Inc. (NWL)-28%
Blackstone Inc. (BX)13.8%
5 more rows

What stock is currently paying the highest dividend? ›

Pioneer Natural Resources Co.

Once again topping the S&P 500, Pioneer is the highest dividend-paying stock in the index – but with an asterisk. Dividends are irregular, based in large part on how much PXD drills and what the price of oil is, so the trailing dividend is not going to be the exact future dividend.

What stock has the highest dividend return? ›

No stock in the S&P 500 has a higher dividend yield than independent oil and gas company Pioneer Natural Resources (PXD (opens in new tab)).

What stocks are going to double in 2023? ›

7 Growth Stocks That Can Double in 2023
PSNYPolestar Automotive$5.82
DRSLeonardo DRS$13.03
3 more rows
Jan 11, 2023

What to invest in April 2023? ›

My Top 10 Growth Stocks to Invest in for April 2023
  • Accenture (NYSE:ACN)
  • Adobe (NASDAQ:ADBE)
  • Amazon.
  • Broadcom (NASDAQ:AVGO)
  • Danaher (NYSE:DHR)
  • S&P Global (NYSE:SPGI)
  • Salesforce (NYSE:CRM)
Apr 6, 2023

What new stocks are coming out in 2023? ›

65 IPOs
IPO DateSymbolCompany Name
May 5, 2023ALCYAlchemy Investments Acquisition Corp 1
May 4, 2023KVUEKenvue Inc.
May 2, 2023GODNGolden Star Acquisition Corporation
Apr 28, 2023TRNRInteractive Strength Inc.
61 more rows

What is Johnson and Johnson dividend for 2023? ›

Johnson & Johnson's upcoming ex-dividend date is on May 21, 2023. Johnson & Johnson shareholders who own JNJ stock before this date will receive Johnson & Johnson's next dividend payment of $1.19 per share on Jun 05, 2023.

What is Northwestern Mutual dividend for 2023? ›

The balance is credited with the current dividend interest rate (5.0% for most policies in 2023) to determine the end-of-year accumulated value.

What is CRH dividend for 2023? ›

A Final Dividend of US$1.03 per Ordinary Share will be paid on 4 May 2023 to shareholders registered at the close of business on 17 March 2023.

What are the top 10 dividend stocks to buy? ›

Securities Mentioned
Blackstone Inc BX$83.08 −0.16%
Pfizer Inc PFE$36.77 +0.80%
Phillips 66 PSX$94.94 −0.30%
Truist Financial Corp TFC$29.70 −0.47%
Verizon Communications Inc VZ$36.05 −0.22%
5 more rows

How to make $1,000 a month in dividends? ›

Look for $12,000 Per Year in Dividends

To make $1,000 per month in dividends, it's better to think in annual terms. Companies list their average yield on an annual basis, not based on monthly averages. So you can make much more sense of how much you might earn if you build your numbers around annual goals as well.

How to make $5,000 a month in dividends? ›

How To Make $5000 A Month In Dividends In 7 Easy Steps
  1. Develop a long term perspective.
  2. Determine how much you can allocate for investment.
  3. Select dividend stocks that are consistent with your strategy.
  4. Invest in your selected dividend stocks regularly.
  5. Keep investment costs and trading to a minimum.

What is the Motley Fool's top 10 stocks 2023? ›

The Motley Fool has positions in and recommends, Apple, Bank of America, Berkshire Hathaway, Bitcoin, Block, Etsy, FedEx, Intuitive Surgical, MercadoLibre, PayPal, Pinterest, Shopify, and Walt Disney.

Which stock will be multibagger in 2023? ›

Best multibagger stocks in India (2023)
NameSub-Sector5Y CAGR (%)
Varun Beverages LtdSoft Drinks50.05
Adani Enterprises LtdCommodities Trading62.94
Tube Investments of India LtdCycles60.59
Tanla Platforms LtdSoftware Services73.18
2 more rows
Apr 6, 2023

What stocks to buy for the next 5 years? ›

Growth stocks for next 5 years
S.No.NameCMP Rs.
1.Brightcom Group14.80
2.Man Infra93.20
3.BLS Internat.174.45
4.D-Link India243.35
23 more rows

What is the best and safest dividend stock? ›

Safe High Yielding Stocks
CompanyTickerPayout Ratio
Best BuyBBY50%
5 more rows
Mar 21, 2023

What are the best dividend stocks to buy and hold forever? ›

April 25, 2023, at 2:09 p.m. Identifying stocks to buy and hold for decades rather than months or years can be difficult.
7 Dividend Stocks to Buy and Hold Forever.
Dow Inc. (ticker: DOW)Materials5.1%
Goldman Sachs Group Inc. (GS)Financials2.9%
Honeywell International Inc. (HON)Industrials2.1%
3M Co. (MMM)Industrials5.7%
3 more rows
Apr 25, 2023

What stocks pay more than 6% dividend? ›

Some of the best dividend stocks paying over 6% include AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), and Pioneer Natural Resources Company (NYSE:PXD).

Which stocks will give bonus share in 2023? ›

Growington Vent24:10025-03-2023
Astral Ltd1:314-03-2023
34 more rows

What are whole life dividend rates for 2023? ›

The balance is credited with the current dividend interest rate (5.0% for most policies in 2023) to determine the end-of-year accumulated value.

Which company gives highest bonus shares? ›

Most Bonus Giving Shares in India
  1. BPCL. First on our list is the Indian oil major BPCL, i.e., Bharat Petroleum Corporation Limited. ...
  2. Wipro. Next on our chart is the Indian IT major, Wipro. ...
  3. Infosys. Third, on our list is the IT giant Infosys. ...
  4. ITC. ...
  5. GAIL (India) ...
  6. Dabur India. ...
  7. Samvardhana Motherson. ...
  8. Tata Consultancy Services.
Feb 21, 2023

What is the highest paying monthly dividend stock? ›

High-Yield Monthly Dividend Stock #4: AGNC Investment Corporation (AGNC) High-Yield Monthly Dividend Stock #3: PermRock Royalty Trust (PRT) High-Yield Monthly Dividend Stock #2: ARMOUR Residential REIT (ARR) High-Yield Monthly Dividend Stock #1: Orchid Island Capital (ORC)

What are the best stocks that pay monthly dividends? ›

  • AGNC Investment Corp. (AGNC)
  • Armour Residential REIT Inc. (ARR)
  • Ellington Financial Inc. (EFC)
  • Orchid Island Capital Inc. (ORC)
  • Oxford Square Capital Corp. (OXSQ)
  • San Juan Basin Royalty Trust (SJT)
  • SL Green Realty Corp. (SLG)
Apr 19, 2023

Which stock has the highest dividend? ›

No stock in the S&P 500 has a higher dividend yield than independent oil and gas company Pioneer Natural Resources (PXD).


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