2 No-Brainer Dividend Stocks to Buy for Income This May

In an era of market volatility, dividend-paying stocks remain a cornerstone of stable income generation. For investors seeking reliable payouts and capital appreciation, two stocks stand out in Q2 2025: FirstEnergy (FE) and Hasbro (HAS). Both offer compelling yields, resilient business models, and strong fundamentals. Let’s dissect why these are top picks for income-focused investors.

1. FirstEnergy (FE): The Utility Powerhouse with a 4.15% Yield

FirstEnergy, a regulated utility serving the Midwest and Mid-Atlantic U.S., delivers a forward dividend yield of 4.15%, making it one of the highest-yielding stocks in the sector. Its regulated operations ensure stable cash flows, shielding it from market swings.

Key Strengths:
- Regulated Stability: As a regulated utility, FE’s earnings are predictable, with rate hikes approved by state regulators.
- Growth Track Record: The stock rose 16.3% over the past 12 months (as of May 2025), outperforming broader markets.
- Valuation Advantage: Morningstar rates it 4 stars, noting it trades at a 3% discount to its fair value, signaling undervaluation.

FE’s dividend has grown steadily, supported by its diversified portfolio of nuclear, coal, and renewable energy assets. Investors benefit from both income and capital gains in a sector insulated from economic cycles.

2. Hasbro (HAS): A Play on Iconic Brands with a 4.52% Yield

Hasbro, the creator of Transformers, Monopoly, and Paw Patrol, offers an impressive 4.52% dividend yield—the highest among our picks. Despite modest stock performance in recent quarters, its undervalued status and cash-rich balance sheet make it a compelling buy.

Why Now?
- Underappreciated Value: Morningstar rates it 4 stars, with the stock trading 25% below its fair value as of May 2025.
- Dividend Sustainability: A narrow economic moat ensures consistent cash flows from timeless brands.
- Growth Catalysts: Its pivot to digital gaming (e.g., Hasbro Gaming) and partnerships with streaming platforms could unlock new revenue streams.

While its 4.4% 12-month stock growth pales compared to FE’s, its dividend yield and valuation make it a bargain for income investors. A 25% undervaluation suggests significant upside potential.

Why These Stocks Over Others?

Among the top candidates like Philip Morris (PM) or AT&T (T), FE and HAS excel in two critical areas:

1. Yield Superiority: Both exceed the 4% threshold, surpassing PM’s 3.15% and AT&T’s unspecified but likely lower yield.
2. Resilience: Utilities (FE) and consumer staples (HAS) are defensive sectors, thriving in both expansion and recessionary environments.

Conclusion: A Secure Income Play for 2025

Investors chasing dividends in May 2025 should prioritize FirstEnergy (FE) and Hasbro (HAS). FE’s regulated stability and 4.15% yield provide a fortress against volatility, while HAS’s 4.52% yield and undervaluation offer a rare combination of income and growth potential.

Data-Driven Evidence:
- FE has returned 16.3% over 12 months, outperforming the S&P 500’s 7.2% gain during the same period.
- HAS trades at a 25% discount to fair value, with its dividend payout ratio at a conservative 50%, ensuring sustainability.

Both stocks align with Morningstar’s Dividend Leaders Index criteria—companies with 50+ years of dividend history (like Altria) or strong moats—providing confidence in their payout resilience.

In a market where uncertainty looms, these two stocks offer the double benefit of steady income and capital preservation, making them “no-brainer” picks for 2025.

Final Note: Always consider individual risk tolerance and diversification. Consult a financial advisor before making investment decisions.