2 Bulletproof Dividend Stocks to Buy in May

Dividend stock investing has long been a cornerstone for building wealth, offering investors a steady stream of passive income while providing a buffer against market volatility. These stocks, typically from well-established companies, distribute a portion of their profits as dividends, rewarding shareholders with regular payouts that can be reinvested or used as income.

Historically, dividend-paying stocks have outperformed non-dividend payers over the long term, with lower volatility, as they often belong to mature, financially stable firms in defensive sectors like healthcare and consumer staples. 

In May 2025, the economic environment — marked by a 0.3% GDP contraction in Q1, and new tariffs increasing costs — makes dividend stocks particularly attractive. With S&P 500 earnings growth potentially falling 4% due to cyclical sector weakness, and inflation concerns lingering, dividend stocks offer stability and income reliability. 

Their consistent payouts, often growing over decades, help offset inflation’s erosion of purchasing power, making them a smart buy for investors seeking safety and income in today’s uncertain market.

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) stands out as a bulletproof dividend stock to buy in May as it offers retirees and income-focused investors unmatched stability. As a Dividend King with 63 years of consecutive dividend increases, JNJ ensures reliability. 

Trading at $155 per share, up 7.4% year-to-date, it yields 3.2% annually well above the S&P 500’s 1.3%. Its 61% free cash flow payout ratio, backed by $21.9 billion in first-quarter revenue, a 4% increase from last year, supports dividend sustainability. 

The pharmaceutical giant’s diversified healthcare portfolio that spans oncology drugs, like Darzalex, and medical devices, drives steady cash flows, with $38.8 billion in cash and a AAA credit rating. This financial strength helps JNJ navigate the economic uncertainty roiling the markets. 

While patent expirations and litigation risks, like the talc lawsuits it tried (but the court rejected) for settling for $10 billion, pose challenges, JNJ’s global scale and defensive sector positioning mitigate these. For investors seeking reliable income amidst tariff pressures and market volatility, JNJ’s consistent dividends and resilience make it a top buy.

Procter & Gamble (PG)

The second bulletproof dividend stock to buy in May is consumer products behemoth Procter & Gamble (NYSE:PG). It’s also a Dividend King with 69 years of consecutive dividend increases, indicating an unwavering commitment to shareholders. There are only four companies with histories of raising their payouts for more than 60 years (JNJ is also one of them), putting Procter & Gamble in an elite club of an already elite group of dividend stocks. Its stock has paid a dividend continuously for 135 years.

PG stock goes for $160 per share, down 4.5% in 2025 but just 2% over the past 12 months, yields 2.5% annually. PG’s third-quarter revenue fell 2% to $19.8 billion, but on an organic basis were up 1% year-over-year. The strongest segment was healthcare, which enjoyed organic sales increases of 4%. Its oral care segment has the No. 2 market share position globally with 20% of the market behind its Crest and Oral-N brands. It is the largest player in personal care markets with Vicks, Metamucil, and Pepto-Bismol.  

Its FCF payout ratio of 65% payout ratio ensures its dividend is sustainable, while the defensive consumer staples sector it competes in provides resilience. Although tariffs on imported raw materials pose risks, PG’s 1% price hike this past quarter demonstrates its pricing power.

With a global presence and a portfolio of daily-use products, Procter & Gamble is well-positioned to weather economic uncertainty, making it a top choice for dependable dividend income this month.

Key takeaways

The post 2 Bulletproof Dividend Stocks to Buy in May appeared first on 24/7 Wall St..