3 Passive Income Dividend Stocks To Buy in May

Core Viewpoint - The article discusses the advantages of dividend stocks as a better alternative for passive income compared to traditional banking investments like Certificates of Deposit (CDs), especially in the context of rising interest rates and inflation. Group 1: Dividend Stocks as Investment Options - Dividend stocks historically account for approximately 33% of S&P 500 returns, indicating their significance in investment portfolios [4] - Investors seeking passive income typically desire principal safety, high liquidity, comparatively high yields, and ease of transaction, all of which dividend stocks can provide at various risk levels [5][6] - The article highlights three dividend stocks that offer yields exceeding 7.0% APY, making them attractive compared to a Goldman Sachs CD yielding 5.0% [7] Group 2: Specific Dividend Stocks - ClearBridge Energy Midstream Opportunity Fund Inc (NYSE: EMO): Offers a yield of 8.28%, with an annual dividend amount of approximately $414.00 for a$5,000 investment. The fund invests in public US companies, primarily Limited Partnerships and Master Limited Partnerships, without the liabilities associated with direct oil and gas operations [10][12] - Broadstone Net Lease, Inc. (NYSE: BNL): Provides a yield of 7.40%, with an annual dividend amount of around $370.00 for a$5,000 investment. This Real Estate Investment Trust (REIT) manages a diversified portfolio of commercial properties, boasting a 99.4% occupancy rate and 99.2% rent collections as of the end of 2023 [14][15] - First Interstate BancSystem, Inc. (NASDAQ: FIBK): Yields 6.75%, with an annual dividend amount of approximately $337.50 for a$5,000 investment. The bank has shown a 15% increase in earnings and a 25% increase in profits, indicating effective management and operational efficiencies [18][20]