2 Top Dividend Stocks to Buy in May

Two top TSX dividend stocks are safe investment options for income-focused investors this month.

Key Points
  • Dividend-focused, defensive positioning can deliver stable income amid geopolitical volatility, with the TSX holding up (+7.5% YTD).
  • Whitecap Resources (WCP) provides a monthly-income engine—4.57% yield, +38% YTD and Q1 free funds flow up 624%—a $7,000 position would generate about $82/month.
  • Emera (EMA) complements that income with regulated, growing quarterly dividends—4.06% yield, 19 years of increases, and multi‑year capex/rate visibility—making the WCP+EMA pairing a resilient income engine.

Dividend investing is a proven strategy during heightened volatility, including a war-torn market. The TSX has so far endured geopolitical risks, as evidenced by the index’s 7.5% year-to-date return. There’s an abundance of generous dividend-payers, although not all are safe harbours in today’s investment landscape.

Income-focused investors should focus on defensive positioning and dividend durability. You can pair Whitecap Resources (TSX: WCP) with Emera (TSX: EMA) to ensure uninterrupted income streams and growing payouts. The oil price shock benefits the energy stock, while favourable market conditions support the utility stock’s dividend growth guidance.

financial chart graphs and oil pumps on a field

Source: Getty Images

Monthly dividends

Whitecap Resources is not only a standout performer thus far in 2026 but is also a top option for its monthly dividend policy. At $15.63 per share, WCP is up 38.2% year-to-date and pays a hefty 4.6% dividend. The key unconventional assets in the Montney and Duvernay regions, as well as the conventional asset in Saskatchewan, focus on light oil production.

In Q1 2026, free funds flow increased 624% year-over-year to $349 million following a record average quarterly production of 391,416 barrels of oil equivalent per day (boe/d). Generated funds flow reached over $1 billion, further strengthening its balance sheet.

The $19 billion energy major and oil-weighted producer said operational activity remained high during the quarter. Management added that the ongoing Middle East conflict improved the company’s cash flow outlook. Also, elevated oil prices prompted Whitecap to hedge 34% of its crude oil production in 2026 and 23% in 2027.

Hedging is part of its commodity risk management strategy. However, Whitecap incurred a realized loss of $20.5 million on its commodity risk management contracts at the end of the same quarter. The annual production growth target remains at 3% to 5%.

Regarding dividend consistency, the large-cap oil and gas producer has never missed a monthly payout since 2021. A $7,000 position today will generate $81.73 in monthly passive income ($326.90 annually).

Quarterly payouts

Emera is a sound option for risk-averse income investors. Its rate-regulated utility assets serve as a shield against volatile market swings. The $22 billion energy and services company’s defensive business model generates stable cash flows. EMA also boasts 19 consecutive years of dividend increases. At $71.96 per share (+8.6% year-to-date), the dividend yield is 4.1%.

The new $20 billion capital investment plan from 2026–2030 focuses on grid modernization and primarily in Florida utilities (80%) in the United States. In addition to the annual earnings growth target of 5% to 7%, EMA commits to 1% to 2% annual dividend growth through 2030.

In Q1 2026, Adjusted net income rose 9.5% to $415 million compared to Q1 2025. Operating cash flow increased 6% year-over-year to $775 million. Its President and CEO, Scott Balfour, disclosed that multi-year rates are in place at Emera’s three largest utilities. They provide regulatory visibility and support long-term returns. The constructive regulatory environments in which Emera operates lend confidence to invest.

Resilient income engine

Whitecap Resources and Emera form a defensive portfolio with dividend stability. You’ll be implementing a risk management strategy, and not chasing yields. More importantly, this energy-utility pairing is a resilient income engine amid the war anxiety in 2026.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Emera and Whitecap Resources. The Motley Fool has a disclosure policy.

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