12 52-Week Low Dividend Stocks To Avoid

1. Stellantis N.V. (NYSE:STLA)

52-week Decline as of March 7: 53.15%

Dividend yield: 5.58%

Number of Hedge Funds: 32

Netherlands-based company, Stellantis N.V. (NYSE:STLA), is a multinational automotive giant formed through the merger of Fiat Chrysler and PSA Group. The company’s portfolio includes various brands, such as Jeep, Dodge, Peugeot, and Maserati. It has a strong foothold in both North American and European markets.

Although Stellantis N.V. (NYSE:STLA) has made progress since its incorporation, its stock hit a 52-week low of $11.40 and is now trading at $12.73, showing a 53.15% decline in the last 52 trading weeks. The decline was primarily attributed to the transitional period of product upgrades and inventory reduction negatively impacting net revenues and consolidated shipments. The company’s EPS for the most recent quarter saw a decline of 61%. This comes after a 5% decline in market share in Europe and North America due to lower shipment volumes and FX headwinds. Despite these challenges, 32 hedge funds held stakes in the company, as per Insider Monkey’s Q4 2024 database, indicating some institutional confidence.

Stellantis N.V. (NYSE:STLA) offers a dividend yield of 5.58%. However, the high payout ratio of 84.24% raises concerns about long-term dividend sustainability. Analysts remain cautious, assigning a Hold rating for the stocks. Additionally, with a modest 1-year median price target of $13.66—implying only a 7.29% upside—Stellantis N.V. remains one of the worst 52-week low stocks for risk-averse investors.

Overall, Stellantis N.V. (NYSE:STLA) ranks first on our list of the 12 52-week low dividend stocks to avoid. While we acknowledge the potential for STLA as an investment, our conviction lies in the belief that some AI stocks hold more significant promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STLA but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.

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