5 Best May Dividend Stocks To Buy

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

Follow Insider Monkey on Twitter