2 Dividend Stocks That Are No-Brainer Buys in May

Published: Sunday, May 10, 2026 at 2:35 pm

Two Dividend Stocks Poised to Weather Market Volatility

Amidst geopolitical tensions, rising oil prices, and recessionary concerns, the S&P 500 is trading near all-time highs. This has many investors questioning the market's resilience. In times of uncertainty, some experts suggest focusing on investments with proven track records, such as Johnson & Johnson and Coca-Cola.

Both companies are Dividend Kings, having increased their dividends annually for over five decades. This consistent dividend growth reflects strong business models that have weathered economic ups and downs. Coca-Cola currently yields 2.7%, while Johnson & Johnson yields 2.3%. Both yields are significantly higher than the S&P 500's 1.1% yield.

Coca-Cola's business is performing well, with a 3% increase in case volume and a 10% rise in organic sales in the first quarter of 2026. The stock appears reasonably priced, with a price-to-earnings ratio below its five-year average.

Johnson & Johnson saw a 9.9% increase in sales in the first quarter of 2026. While earnings were slightly down, management increased its full-year earnings guidance by 7%. The company aims for double-digit growth by the end of the decade.

The primary appeal of these stocks lies in their reliable and growing dividends, backed by strong businesses with established histories. These dividends can provide comfort during market downturns, allowing investors to focus on income rather than short-term price fluctuations.

BNN's Perspective: Investing in Dividend Kings like Johnson & Johnson and Coca-Cola can provide a degree of stability in a volatile market. While these stocks may not offer the explosive growth of some tech companies, their consistent dividend payouts and established business models make them attractive options for investors seeking long-term income and reduced risk. However, investors should always conduct their own due diligence and consider their individual financial goals before making any investment decisions.

Keywords: Dividend Stocks, Johnson & Johnson, Coca-Cola, Dividend Kings, S&P 500, Investment, Dividends, Stock Market, Financial Markets, Healthcare, Consumer Staples, Bear Market, Market Volatility, Investment Strategy, Financial Planning

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