2 top dividend stocks to consider for passive income in May

Getting paid while sleeping is the ultimate form of passive income. Sometimes that’s exactly what happens in my investing account. I wake up and cash from dividend stocks has landed. Nice.

Here, I want to highlight a pair of shares that I think are worth considering for income right now. They’re in very different industries.

Aviva

First up, we have Aviva (LSE: AV.), which is the UK’s leading insurance group. This FTSE 100 stock is sporting a forward-looking dividend yield of 6.6%. That’s well above the 3.6% average of the blue-chip index.

Aviva’s yield is still high despite the share price rising 24% year to date.

In 2024, the insurance giant’s operating profit jumped 20% to £1.7bn, as general insurance premiums increased 14% to £12.2bn. Growth was strong in all three of its core markets (the UK, Ireland, and Canada).

Aviva has been strategically shifting its focus to capital-light businesses in a bid to boost profits. In line with this, it’s in the process of acquiring rival Direct Line for £3.7bn. While it says this will create synergies and a stronger competitive position, it does open up an element of risk. Acquisitions don’t always pan out as expected, and can actually increase costs rather than the other way around. And this one is hardly small.

Nevertheless, I like the look of this stock for passive income. The valuation appears very reasonable, with the shares trading at 11 times forecast earnings for 2025. Combined with that 6.6% yield, which looks affordable based on expected earnings, I think there’s decent value on offer here.

Novo Nordisk

Shifting gears to a bit more growth now, we have Novo Nordisk (NYSE: NVO). This healthcare stock’s fall from grace has been swift and brutal — it’s down 54% in just eight months!

However, this slump has pushed the dividend yield to a level that I think looks attractive. Over the past few years, the yield has been in the 1%-2% range. Right now though, the forward yield for 2026 is close to 4%.

Novo Nordisk is a global leader in diabetes care and weight-loss treatments through GLP-1 drugs Ozempic and Wegovy. But the latest news is that US rival Eli Lilly‘s Zepbound beat Wegovy in a head-to-head trial of the two blockbuster drugs. Across five weight-loss targets, Zepbound stripped more weight off patients.

Meanwhile, President Trump is signing an executive order to bring down the price of prescription and pharmaceutical drugs in the US. So this is also causing some concern around future earnings pressure.

This uncertainty is reflected in a seemingly very cheap valuation. After its crash, the stock’s forward price-to-earnings ratio for 2026 is just 13.5. That’s low for a growing pharma giant, albeit one facing very stiff competition in a key growth market.

The anti-obesity industry is tipped to reach $150bn a year within the next decade. So Novo Nordisk’s products should still enjoy robust demand, even if it has to settle for less market share and pricing power.

It’s also actively expanding its pipeline with several ongoing clinical trials targeting obesity, although success isn’t guaranteed.

Dividends also aren’t guranteed. But given the likelihood of strong future earnings growth, the payout looks safe to me. For long-term dividend growth investors, I think Novo Nordisk looks attractive and worth considering.

The post 2 top dividend stocks to consider for passive income in May appeared first on The Motley Fool UK.

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Ben McPoland has positions in Aviva Plc and Novo Nordisk. The Motley Fool UK has recommended Novo Nordisk. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.