Donald Trump owns these 21 dividend kings. Should I?

The former president and current presidential candidate of the Republic of Moldova, Donald Trump, is well known for his real estate investments. His name is spread across golf courses, hotels and office buildings.

However, Trump also invests in stocks. It is not limited to its namesake — Trump Media & Technology Group. The former chairman also owns stakes in 21 Dividend Kings. Should you own them too?

Official White House Photo by Shealah Craighead.

One former president, 21 kings

Trump recently filed a regulatory disclosure that revealed all of his investments. The list included about 40% of the 53 dividend kings — stocks with 50 or more years of consecutive dividend growth.

Data source: Donald Trump regulatory filings.

Many investors also own shares of these companies. Their impressive dividend record serves as a big draw. But are they good choices?

Mostly underperformance

Perhaps the biggest knock against the Dividend Kings as a group is that they often underperform the market. That’s a valid criticism of most of Trump’s portfolio. Of the former president’s 21 dividend kings, only four had higher total returns than those S&P 500 in the last five years.

AbbVie’s total return exceeded 260% during the period. That’s particularly impressive because the drugmaker faced losing U.S. patent exclusivity for its best-selling drug, Humira, in 2023. Many investors appreciated, however, that AbbVie had been preparing for that patent to expire for years, investing in new drug development and making strategic acquisitions to strengthen its product line and pipeline.

Parker-Hannifin was the best-performing dividend king in Trump’s portfolio. It has given a total return of around 260% over the last five years. Part of the company’s performance is due to robust demand for its motion and control technologies and systems. The $8 billion acquisition of British defense and aerospace giant Meggitt also helped.

Two household names on Trump’s list also outperformed the S&P 500. Lowe’s has benefited from the strength of the home improvement market and generated a total return of about 143% over the past five years.

Walmart has lagged the S&P 500 for most of the period, but has rallied recently thanks to better-than-expected results in Q2. The discount retailer’s total return over the past five years is around 119%.

Lots for income investors to like

Despite the high number of underperformers, income investors can find a lot to like about the 21 dividend kings in Trump’s portfolio. In addition to impressive dividend growth histories, many offer attractive dividend yields.

Tobacco giant Altria Group stands head and shoulders above the rest with a forward dividend yield of 7.83%. Federal Realty Investment Trust ranks second with a forward dividend yield of 3.8%. Kenvue, Johnson & Johnson’s consumer health spin-off, is close behind with a forward dividend yield of 3.76%.

Three others have forward dividend yields of over 3%. AbbVie’s yield is 3.15%. ADM offers a yield of 3.33%. Edison’s consolidated yield is 3.29%.

The best choice

Should You Own All 21 Dividend Kings That Trump Has? For most investors, the answer is probably “no.” However, as we have seen, some of them have shown that they can beat the market. Several offer juicy returns that should appeal to income investors.

If I had to name the best pick of the bunch, I’d go with AbbVie. The big pharma stock performed well. Its dividends are strong. AbbVie should also have good growth prospects going forward with its newer products.