5 Underperforming Dividend Kings Offer Big Passive Income and Huge Total Return Potential

5 Underperforming Dividend Kings Offer Big Passive Income and Huge Total Return Potential Lee Jackson Thu, July 2, 2026 at 7:18 PM GMT+7 10 min read PEP NVDA ABT HRL KMB Quick Read Five Buy-rated Dividend Kings lagging the broader market deliver yields up to 5%, combining reliable passive income with significant total return potential. KMB and HRL now yield 5% and 4.9% as share price declines created historically high entry yields with no dividend cuts. Elliott Investment Management's $4 billion PEP stake argues a strategic refocus on core brands could unlock over 50% upside for shareholders. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and PepsiCo didn't make the cut. Grab the names FREE today. Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable recurring dividends from quality high-yield stocks are a recipe for success. When you have a portfolio that generates consistent, rising passive income and has the potential to deliver sizable total returns, you are in good financial shape. That's why we love the idea of buying Dividend Kings that have lagged the market this year. Companies that have raised dividends for shareholders for 50 years or more are the kinds of investments passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. The Dividend Kings are the 56 companies that have raised their dividends for at least 50 consecutive years, a testament to their dependability and reliability. Those are two "must-have" items for investors who rely on passive income to boost their overall revenue. Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and PepsiCo didn't make the cut. Grab the names FREE today. With the stock market trading at massive all-time highs thanks to the AI/data center technology trade, which is the greatest momentum trade we have seen in a generation, for those looking for solid passive income and a potential total return home run, we found five Dividend Kings that may be the perfect idea for safety-conscious growth and income investors. All five are rated Buy by the top Wall Street firms we cover. This healthcare giant announced a 6.8% dividend increase in December, marking the 54th consecutive year of dividend growth, and its dividend has risen more than 70% since 2020, currently standing at 2.69%. Abbott Laboratories (NYSE: ABT) is a global healthcare company. Its principal business is the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products. The stock has been trading near its 2026 lows. The decline stems from the lowered 2026 adjusted EPS guidance issued after the Exact Sciences acquisition. While Wall Street maintains a bullish longer-term view, the near-term guidance cut has weighed on the shares year to date. Established Pharmaceutical Products, which is engaged in the international sales of a broad line of branded generic pharmaceutical products. Diagnostic Products sells diagnostic systems and tests worldwide to blood banks, hospitals, commercial laboratories, and alternative-care testing sites. Nutritional Products is engaged in worldwide sales of a broad line of adult and pediatric nutritional products. Medical Devices is involved in the worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation, and diabetes care products. BTIG Research has a Buy rating with a $131 target price. Hormel Foods (NYSE: HRL) is an American food processing company founded in 1891 in Austin, Minnesota. Its stock trades at 13.07 times forward earnings estimates. Hormel offers dual pricing power through both branded products and private-label manufacturing, and a reliable 4.69% dividend. The company develops, processes, and distributes a range of meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. Hormel has declined 17.4% over the past year, meaningfully underperforming the S&P 500, which has rallied nearly 14.4%. The stock continues to face pressure from higher input costs, elevated logistics expenses, and weak gross profit margins. Nevertheless, it remains one of the highest-yielding Dividend Kings. Hormel is a Dividend King with over 50 years of dividend increases and is a consumer staples company focused on protein-based packaged foods. I

5 Underperforming Dividend Kings Offer Big Passive Income and Huge Total Return Potential

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