Summary

• Dividend Kings nearly closed their YTD performance gap with SPY, now trailing by just 0.23% after a strong June rebound.
• Twenty-seven Dividend Kings are identified as both potentially undervalued and offering ≥10% annualized long-term return, based on Dividend Yield Theory.
• Four Kings announced dividend increases last month, with the average 2026 dividend growth rate for all Kings rising to 3.87%.
• Fourteen Kings project double-digit earnings growth over 3-5 years, supporting robust long-term return expectations.

2026 Review

After sitting on a 3.75% gain through Memorial weekend, the SPDR® S&P 500® ETF (SPY) went on to cap off May with a total gain of 5.26%. Meanwhile the Dividend Kings, on average, declined

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ABBV, ADP, HRL, JNJ, LOW, PEP, SPGI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.