5 No-Brainer Dividend Stocks to Buy This May

It’s always a good idea to keep your portfolio well-protected, especially now.

One of the best ways to do that, while generating passive income, is with highly respected dividend stocks that can sustain payouts. Plus, dividend stocks can help smooth out the ride when markets get a bit volatile.

That being said, here are just a few no-brainer dividend stocks to buy now.

PepsiCo 

With a yield of 3.81%, PepsiCo (NASDAQ: PEP) is a familiar name with a strong, dependable yield.

First, PEP has now raised its dividend for the 53rd time since 1965. Most recently, PEP paid out a quarterly dividend of $1.355 per share – a 7% increase year over year – on March 31.

Second, analysts at RBC just reiterated a sector perform rating on the stock with a target price of $163 per share. We’ll also get a better look at PEP when it releases earnings.

Third, the company appears to have priced in earnings negativity.

EPS of $1.48 missed by a penny. Revenue of $17.92 billion, down 1.8% year over year, beat expectations by $190 million. It also cut guidance on market uncertainty. But again, the now oversold stock appears to have priced in the negativity.

Plus, while we wait for PEP to recover lost ground, we can collect its yield.

Realty Income

With a yield of 5.62%, Realty Income (NYSE: O), a real estate investment trust (REIT) has been paying out a monthly dividend for the last 110 consecutive quarters.

Realty Income also stands out thanks to its triple net leases. That means that even though Realty Income owns the properties, its tenants pay most of the expenses such as operating expenses, insurance, and taxes. Even better, many of its tenants are recession-resistant.

These tenants include 7-Eleven, Dollar Tree, Walgreens, CVS Pharmacy, Tractor Supply, FedEx, Home Depot and Walmart.

Well-diversified with a solid yield, and an impressive list of tenants, Realty Income is a standout when it comes to no-brainer dividend stocks.

Enbridge 

With a yield of 5.84%, Enbridge (NYSE: ENB) is another hot, no-brainer dividend stock.

The company operates one of North America’s biggest energy infrastructure businesses. Plus, its liquids pipelines, gas projects, and its renewable energy assets help generate healthy cash flow. And, about 98% of its earnings come from predictable assets.

Helping, analysts at Citi just initiated a buy rating on the ENB stock, which believes the company is well-positioned to benefit from global energy demands. “The firm’s analysts emphasized that Enbridge has consistently exceeded global energy demand growth by 400 basis points, a trend they anticipate will persist,” added the firm, as quoted by Investing.com.

Better, ENB just announced a dividend of CAD 0.94225 per share, which is payable on June 1 to shareholders of record as of May 15.

Global X Super Dividend U.S. ETF 

We can also look at dependable dividend-paying exchange-traded funds (ETFs).

With an expense ratio of 0.56% and a yield of 1.77%, the Global X Super Dividend U.S. ETF (NYSEARCA: DIV) invests in some of the highest dividend-yielding stocks in the U.S.

According to Amplify ETFs, “DIVO is designed to offer monthly income while providing high risk-adjusted returns that corresponds generally to the CWP Enhanced Dividend Income Portfolio (EDIP). DIVO seeks to provide gross annual income of approximately 2-3% from dividend income and 2-4% from option premiums.”

It also holds 24 stocks, including Visa, CME Group, Caterpillar, JPMorgan, Honeywell, Microsoft, Goldman Sachs, American Express, Home Depot and IBM to name just a few.

Also, since launching on December 14, 2016, at $17.05, the DIV ETF is now up to $39.88. From here, we’d like to see it rally to at least $50.  While we wait for that to happen, we can at least collect its monthly yield.

Amplify CWP Enhanced Dividend Income ETF

With a yield of 4.81% and an expense ratio of 0.56%, the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA: DIVO) holds large-cap companies that have a strong history of dividend growth. It also uses a covered call strategy on individual stocks to offer high total returns.

“DIVO seeks investment results that correspond generally to an existing strategy called the Enhanced Dividend Income Portfolio (EDIP),” as noted by AmplifyETFs.com. That strategy attempts to generate income through dividends and short-term covered calls in an effort to increase cash flow and consistent annual income. In addition, with that strategy, the EDIP holds blue-chip stocks from the S&P 500, the Dow 30, and the S&P 100.

Also, since it began trading in December 2016, the DIVO ETF ran from a low of about $17.21 to a recent high of $42.46 for a gain of 147%. That doesn’t include its yield.

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