July 2025 Dividend Kings Review: Collective Loss of 0.39%

In July 2025, the 55 Dividend Kings collectively posted a 0.39% loss, while the SPDR S&P 500 Trust ETF saw a slight gain. Despite the setback, the Dividend Kings have a strong track record of consistently paying dividends, with many having done so for over 50 years.

In July 2025, the 55 Dividend Kings collectively posted a 0.39% loss, marking a setback in their performance. Meanwhile, the SPDR S&P 500 Trust ETF (SPY) saw a slight gain of 1.77% through July 21st. This month's performance underscores the volatility and potential risks associated with dividend-focused investments compared to broader market indices.

Despite the loss, the Dividend Kings have a strong track record of consistently paying dividends, with many having done so for over 50 years. This resilience has made them a favorite among income-focused investors. However, the recent performance highlights the importance of diversifying investment portfolios to mitigate risks.

Among the Dividend Kings, thirteen have achieved double-digit total returns this year, with National Fuel Gas (NFG) leading the pack with a 47.89% gain. Conversely, Target (TGT) remains the worst-performing Dividend King, down 21.91% year-to-date. This variability emphasizes the importance of individual stock selection and thorough research.

The performance of the Dividend Kings relative to SPY is a stark contrast. As of July 21st, the Kings have a year-to-date return of 3.47%, compared to SPY's 7.59% gain. This disparity underscores the broader market's resilience and potential for higher returns.

Investors should also consider the dividend yield theory and expected rate of return when evaluating the Dividend Kings. This valuation model compares the forward dividend yield to the trailing 5-year average dividend yield to measure undervaluation. The expected long-term annualized rate of return is measured as a combination of analyst earnings growth forecasts, margin of safety, forward dividend yield, and 5-year annualized return for fair value based on dividend yield theory.

In conclusion, while the Dividend Kings offer attractive dividend yields and a history of consistent payouts, their performance in July 2025 highlights the risks associated with dividend-focused investments. Investors should remain vigilant and diversify their portfolios to mitigate risks and maximize returns.

References:
[1] https://seekingalpha.com/article/4803012-best-dividend-kings-july-2025
[2] https://finance.yahoo.com/quote/SPY/
[3] https://www.ainvest.com/news/etf-weekly-fund-outflow-report-2507-34/