This article will look at 12 dividend stocks with a 52-week low that investors may want to avoid.
Navigating the stock market can feel like sailing through stormy seas when certain stocks hit their 52-week lows. The dip may seem like a golden opportunity to some investors, but stocks that have dropped significantly—especially those with a 12-month share price decline of 25% or more—may carry hidden risks.
In this article, we will explore 12 dividend stocks ranked by their 12-month share price decline, which serves as a key indicator of potential problems, including financial instability or market pressures that could turn what seems like an opportunity into a trap.
READ ALSO: 14 Best Performing Dividend Stocks To Buy Now
However, even the stock with a highly appealing dividend yield may have to be avoided when trading at its 52-week low. This leads to the question – “Is a 52-week low a red flag?” And the answer is yes. Stocks reaching their 52-week low tell us they are experiencing declining revenues, management challenges, or broader industry downturns. The scenario is worse if it’s a dividend-paying stock. Inflated dividend yield masking deeper problems has frequently been seen in declining stocks to make them attractive to investors.
It shows that the seductiveness of the high dividend yields can also mean trouble. Investors focusing on the dividend yield rise sometimes forget to see the declining stock price, thereby falling into a trap – the phenomenon also called the dividend trap. For instance, in one of their recent articles, Barron pointed out a few food companies that were seeing their stock prices decline due to various challenges. Barron reported that these declines were making their high dividend yields less appealing.
The unsuspecting dividend trap does not mean that investors should focus on growth stocks instead of dividend stocks. The latter remains a haven for investors looking for stable income and capital appreciation. However, it is essential for investors looking for dividends to prioritize quality over sheer yield. Focusing on the companies’ financial stability, consistency of their earnings growth, and sustainability in their payout ratios can potentially lead the investors to a more reliable return in the long term. When stressing the importance of quality investing, Bloomberg also noted that growth companies trading at unreasonably high values can eat into future returns, even if their growth expectations are realized, and hence advocating for quality investing, where identifying the strong fundamentals of the companies takes priority.
In this regard, as we venture into our article and list out 12 dividend stocks currently at their 52-week lows, we will be focusing on the fundamentals of the company and the reasons behind their declines to provide the investors with an opportunity to make informed investment decisions instead of falling into a dividend trap.
The allure of high dividends may be strong, but we must be thoroughly sure of the underlying company’s health. Remember that a high yield from a sinking ship won’t keep us afloat.
So, stay tuned as we count down from 12 to 1, 52-week low dividend stocks you may want to avoid. You might be surprised by the top 6 on our list.
Our Methodology
We used a screening process to compile our list of 12 dividend stocks with a 52-week low. The stocks are ranked based on their 12-month share price decline, with those that have experienced the largest declines at the top. We also focused on stocks with a minimum dividend yield of 3%, ensuring they remain viable dividend-paying stocks for consideration. Primarily, we included stocks with a decline of at least 25% in their share price over the past 52 weeks, indicating the continuous downward pressure during the year. By setting the dividend payout ratio at 90% or less, we filtered out stocks with excessively high payout ratios, which signals overcompensation. We limited our analysis to companies with a market capitalization of at least $1 billion to remain focused on established enterprises. The stocks in our list are ranked based on a 12-month share price decline, thereby solidifying our list with data reasoning. We additionally used hedge fund portfolios from our Insider Monkey database to report to our readers how strongly hedge funds back the stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Cenovus Energy Inc. (NYSE:CVE)
52-week Decline as of March 7: 28.67%
Dividend yield: 3.98%
Number of Hedge Funds: 39
Cenovus Energy Inc. (NYSE:CVE) is a Canadian integrated oil and natural gas company. Their business operations include oil sands production, refining, and marketing. The company benefits from a diverse asset portfolio and cost-efficient operations. It holds third position as the largest crude oil and natural gas producer and second position as Canada’s largest refiner and upgrader.
Cenovus Energy Inc. (NYSE:CVE) is ranked 12th on our list, reflecting a 28.67% decline over the past year. Headwinds such as weak natural gas prices impacted the production volumes through the incompletion of some gas-weighted wells, which had a poor reception among investors, resulting in the inclusion of stock in the worst 52-week stock to be avoided. Additionally, the EPS of $0.05 missed the anticipated $0.18, further causing the decline in the stock’s value. However, the hedge fund activity remains stable, with 39 funds from the Insider Monkey database holding stakes in the company, as of Q4 2024.
Cenovus Energy Inc. (NYSE:CVE) offers a dividend yield of 3.98%. The payout ratio of 48.80% indicates a balance between returning capital to shareholders and maintaining reserves for future operations. Analysts have given the company a Buy rating, with a 1-year median price target of $20.37, representing a substantial 59.87% upside. Despite this long-term growth potential, the near-term outlook remains uncertain.
11. The AES Corporation (NYSE:AES)
52-week Decline as of March 7: 30.38%
Dividend yield: 6.19%
Number of Hedge Funds: 53
The American utility and power generation company, The AES Corporation (NYSE:AES), is engaged in generating and distributing electricity. The company focuses on renewable energy projects with operations across multiple regions, including North America, South America, and Asia. The company’s portfolio contains clean energy assets that drive long-term sustainability.
The AES Corporation (NYSE:AES)’s stock hit a 52-week low of $9.88. As of March 7, 2025, it is currently trading at $11.25, reflecting a 30.38% decline. This position in the list of 52-week low-performing stocks was mainly due to a decline in the earnings before the company’s interest, taxes, depreciation, and amortization (EBITDA) for the past 5 years. Most recently, the extreme weather conditions in Colombia and Brazil negatively impacted their 2024 adjusted EBITDA. The adjusted EPS of $2.14 during the fourth quarter surpasses the guidance range, but lowering the planned renewables investments by $1.3 billion through 2027 may potentially affect the company’s long-term growth. Still, the company benefits from strong institutional interest, with 53 hedge funds holding positions, according to Insider Monkey’s Q4 2024 database.
The AES Corporation (NYSE:AES) maintains a dividend yield of 6.19%. The payout ratio is conservative and stands at 29.11%. Analysts remain optimistic, assigning a Buy rating and a 1-year median price target of $15, implying a potential upside of 33.33%. However, more substantial operational improvements may be needed before the stock makes a meaningful recovery.
10. Macy’s, Inc. (NYSE:M)
52-week Decline as of March 7: 30.88%
Dividend yield: 5.19%
Number of Hedge Funds: 42
The omnichannel retailer, Macy’s, Inc. (NYSE:M), headquartered in New York, the U.S., is a department store chain operating under the Macy’s, Bloomingdale’s, and Bluemercury brands. The company sells apparel, home goods, beauty products, and accessories through its physical stores and e-commerce platforms.
Macy’s, Inc. (NYSE:M) reached a 52-week low of $12.60 and is currently trading at $14.06, reflecting a 30.88% decline in the past 52 weeks. Though the company remains a recognizable name, the promotional activity and inventory challenges have contributed to declining foot traffic and added pressure to its margins, turning Macy’s into a worst 52-week low performer. The adjusted EPS of $1.80 exceeds the estimated $1.53 during the last quarter. However, the company anticipates continued pressure on consumer spending due to inflation and economic uncertainties throughout 2025. Hedge fund interest remains moderate, with Insider Monkey recognizing 42 funds from its database holding positions in Q4 2024.
Macy’s, Inc. (NYSE:M) offers a dividend yield of 5.19% with a payout ratio of 33.57%. The latter suggests that the company can sustain its dividend payments. However, analysts have assigned a Hold rating to the stock, with a 1-year median price target of $14.50, indicating only a slight 3.13% upside. Investors may remain hesitant until more evident signs of a turnaround.
9. FMC Corporation (NYSE:FMC)
52-week Decline as of March 7: 34.87%
Dividend yield: 5.62%
Number of Hedge Funds: 48
FMC Corporation (NYSE:FMC), located in Pennsylvania, the U.S., is a global agricultural sciences company. The company specializes in providing crop protection solutions, including herbicides, insecticides, and fungicides. It has an international presence, including India, where the company is a leader in crop protection solutions. With solutions like the Arc™ farm intelligence platform, the company offers help to monitor pests and optimize operations.
FMC Corporation (NYSE:FMC)’s stock reached a 52-week low of $33.80 and was trading at $41.29, reflecting a 34.87% decline over the past 52 weeks. The headwinds faced by the market because of low demand for agricultural products caused the company’s revenue to decline by 5%. The Chairman and CEO of the company, Pierre Brondeau, made the following statement after the stocks plunged to a 52-week low.
“…customers in many countries sought to hold significantly less inventory than they have historically. This dynamic and more pronounced FX impacts acted as a headwind to further growth.”
The institutional confidence appears mixed with 48 hedge funds still holding positions in FMC, as per Insider Monkey’s database of Q4 2024.
FMC Corporation (NYSE:FMC) offers a competitive dividend yield of 5.62%. The payout ratio stands at 72.27%, demonstrating a strong commitment to shareholder returns irrespective of the profitability pressures. Analysts have assigned a Hold rating to the stock, with a 1-year median price target of $48, representing a modest 16.25% upside. Though the long-term fundamentals are intact, the short-term uncertainties in the agricultural sector remain concerning.
8. Vermilion Energy Inc. (NYSE:VET)
52-week Decline as of March 7: 36.13%
Dividend yield: 4.78%
Number of Hedge Funds: 23
Vermilion Energy Inc. (NYSE:VET), a Canadian oil and gas producer, has operations across North America, Europe, and Australia. The company focuses on acquiring and developing high-quality energy assets and balancing production growth with capital discipline. Key assets of the company are located in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada, Wyoming in the U.S., Southwest Bordeaux and Paris Basin in France, the Netherlands, Germany, Ireland, Croatia, and Slovakia.
As of March 7, 2025, Vermilion Energy Inc. (NYSE:VET)’s stock price reached a 52-week low of $7.09 and was trading at $7.55, reflecting a 36.13% decline. Due to divestment in Southeast Saskatchewan, North American production decreased by 5% year over year. The headwinds in the market have drastically reduced EPS, resulting in a loss of $0.09 per share and jointly contributing to the worst 52-week low for the company. Hedge fund interest remains moderate, with 23 funds from Insider Monkey’s Q4 2024 database holding positions.
With a dividend yield of 4.78% alongside a low payout ratio of 6.62%, Vermilion Energy Inc. (NYSE:VET) may seem like an attractive income stream for investors looking to tap into the energy sector gains. Analysts rate the stock as Hold, with a 1-year median price target of $11.91, representing a potential 57.79% upside. Operational improvements and the company’s ability to navigate through market volatility will determine whether it can reverse this underperformance.
7. Chord Energy Corporation (NASDAQ:CHRD)
52-week Decline as of March 7: 36.41%
Dividend yield: 8.01%
Number of Hedge Funds: 56
Chord Energy Corporation (NASDAQ:CHRD) is an American company engaged in hydrocarbon exploration and hydraulic fracturing in the Williston Basin in North Dakota and Montana. The company mainly focuses on the Middle Bakken and Three Forks formations, which are known for their oil and gas potential. The company produces crude oil and natural gas liquids (NGLs) with a substantial acreage position in the Williston Basin.
As of March 7, 2025, Chord Energy Corporation (NASDAQ:CHRD) was trading at $103.63, reflecting a 36.41% decline over the past 52 weeks and nearing its 52-week low of $99.40. The Q4 EPS of the company beat the consensus estimate by $0.74. However, concerns about the company remain with respect to the impact of the merger with Enerplus and the resulting layoffs. However, with the pricing of a private placement of senior unsecured notes valued at $750 million due in 2033, the company offsets the adverse effects of the merger. The hedge fund interest remains strong, with 56 funds from Insider Monkey’s Q4 2024 database holding positions in the company despite being listed among the bottom 52-week stock list.
Chord Energy Corporation (NASDAQ:CHRD) offers a high dividend yield of 8.01% with a payout ratio of 63.36%. Though a significant portion is used for paying dividends, a healthy portion is also retained to cover debts and future investments. Analysts maintain a Buy rating on the stock, with a 1-year median price target of $160.50, implying a 54.88% upside. Even so, its recent underperformance suggests caution for those looking to enter at current levels.
6. APA Corporation (NASDAQ:APA)
52-week Decline as of March 7: 38.33%
Dividend yield: 5.33%
Number of Hedge Funds: 34
The independent oil and gas exploration and production company, APA Corporation (NASDAQ:APA) is headquartered in Texas, with a diverse portfolio of assets spanning the U.S., Egypt, and the North Sea. The company focuses on conventional and unconventional energy resources, including hydrocarbons, and uses its global footprint to optimize production efficiency and cost control.
As of March 7, 2025, APA Corporation (NASDAQ:APA)’s stock has been under considerable pressure, reaching a 52-week low of $17.66 and trading at $18.84, reflecting a 38.33% decline. The company’s EPS of $0.79 fell short of the consensus estimate of $0.94, thus gaining its position among the worst 52-week low stocks. The low performance is attributed to a decline in oil estimates after the strategic cost-saving measures aimed at saving $350 million. Though the specifics behind the initiative are unclear, it hugely reflects on the company’s value, causing it to become more volatile.
APA Corporation (NASDAQ:APA) provides a solid dividend yield of 5.33%. The yield is backed by a payout ratio of 44.05%, indicating stability in dividend distributions and the possibility of high retained earnings. Analysts currently have a Hold rating on the stock, with a 1-year median price target of $27, representing a 43.31% potential upside. However, weak stock performance presents risks that investors must carefully evaluate.
5. Scorpio Tankers Inc. (NYSE:STNG)
52-week Decline as of March 7: 42.73%
Dividend yield: 4%
Number of Hedge Funds: 32
Monaco-based company, Scorpio Tankers Inc. (NYSE:STNG), is a leading provider of marine transportation for refined petroleum products. The company operates a fleet of modern, fuel-efficient tankers. Their fleet includes 102 product tankers, comprising 39 Long Range 2 tankers, 49 Medium Range tankers, and 14 Handymax tankers. The fleet’s average life expectancy has been estimated to be 8.5 years.
As of March 7, 2025, Scorpio Tankers Inc. (NYSE:STNG) hit a 52-week low of $38.03 and remains close to that level, trading at $39.66, reflecting a 42.73% decline. The headwind for the company includes declining tanker rates, oversupply in the European region, and ongoing refinery maintenance, which caused a decline in the seaborne volumes. The fourth quarter EPS of the company fell short of the anticipated value by $1.05, contributing to the decline in the stock price and further its inclusion in the bottom 52-week stock list. Despite this, the company has attracted 32 hedge fund investors as per Insider Monkey’s Q4 2024 database, suggesting institutional confidence in its long-term progress.
Scorpio Tankers Inc. (NYSE:STNG) demonstrates its ability to sustain dividend payments with an attractive dividend yield of 4% backed by a low payout ratio of 12.17%. Analysts remain bullish, assigning a Buy rating and a 1-year median price target of $69, implying a significant 73.98% upside. Though the long-term growth looks promising, the recent underperformance of the stock necessitates caution in the short term.
4. Hillenbrand, Inc. (NYSE:HI)
52-week Decline as of March 7: 43.82%
Dividend yield: 3.25%
Number of Hedge Funds: 21
The U.S.-based company, Hillenbrand, Inc. (NYSE:HI) is engaged in the manufacturing and sale of processing equipment and systems across various industries. The company operates through three primary segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville. The company’s primary focus is industrial automation and material handling for a broad customer base, including food, plastics, recycling, and death care sectors.
Hillenbrand, Inc. (NYSE:HI) has struggled in 2024-2025, reaching a 52-week low of $25.11. As of March 7, the stock is trading at $27.53, close to its 52-week low, reflecting a 43.82% decline, making it one of the worst stocks on our list. The stock’s performance also declined with a decline in demand in the Molding Technology Solutions segment. The adjusted EPS of $0.56 beat the analyst estimates of $0.54. The institutional interest also remains high, with 21 hedge funds holding stakes in the company, as of Q4 2024.
Hillenbrand, Inc. (NYSE:HI) offers a dividend yield of 3.25% with a relatively high payout ratio of 75%. The latter indicates a significant portion of earnings being used for dividend payments. Analysts maintain a Buy rating, with a 1-year median price target of $40, suggesting a potential 45.30% upside. Even so, the recent weakness speaks of the risks investors should consider before making a decision.
3. Civitas Resources, Inc. (NYSE:CIVI)
52-week Decline as of March 7: 51.17%
Dividend yield: 6.12%
Number of Hedge Funds: 47
Civitas Resources, Inc. (NYSE:CIVI) is the first independent oil and gas producer in Colorado, the U.S. The company is focused on sustainable energy development in the Denver-Julesburg and Permian Basins. The business operations of the company include the exploration, production, and acquisition of oil and natural gas assets. The company consistently emphasizes responsible operations and emissions reduction, and its portfolio comprises high-quality, low-cost reserves catering to domestic and international energy markets.
As of March 7, 2025, Civitas Resources, Inc. (NYSE:CIVI)’s stock has faced significant pressure, hitting a 52-week low of $31.89 and trading close to it at $33.52, reflecting a 51.17% decline in the past year. The decline resulted from concerns over high OPEC+ spare capacity and uncertain global demand. The company missed the analyst estimate for its EPS of $0.17. The company’s 2025 guidance estimated a production of 325,000 to 335,000, but it falls short of the consensus estimate by 3.6%. However, 47 hedge fund portfolios from Insider Monkey’s Q4 2024 database held stakes in the company, suggesting strong institutional interest.
Civitas Resources, Inc. (NYSE:CIVI) offers a strong dividend yield of 6.12% with a payout ratio of 58.75%, indicating its ability to pay off its dividends using earnings. The analysts remain optimistic, with a Buy rating and a 1-year median price target of $65.50, suggesting a 95.41% upside. Yet the recent underperformance has brought the company to our list of worst 52-week low stocks.
2. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)
52-week Decline as of March 7: 51.17%
Dividend yield: 3.94%
Number of Hedge Funds: 38
DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is an American-based leading global manufacturer of dental products and technologies. The company offers many solutions, including dental implants, orthodontics, digital imaging systems, and restorative and preventive dentistry consumables. Its customer base includes dental clinics, laboratories, and extensive dental service organizations.
Despite its established position in the dental industry, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) stock has struggled over the past year, declining by 51.17% to $16.32. The stock has traded as low as $15.47. The decline was attributed to investor concerns over the suspension of sales and marketing of Byte Aligners and Impression Kits due to regulatory pressures. Additionally, the EPS for the fourth quarter beat the analysts’ estimate by $0.17, but the revenue fell back 10.6% year-over-year, indicating strong headwinds in the market. Insider Monkey noted 38 hedge portfolios holding onto the company’s stocks in Q4 2024, reflecting a significant institutional interest.
Though DENTSPLY SIRONA Inc. (NASDAQ:XRAY) maintains a dividend yield of 3.94% with a manageable payout ratio of 28.83%, the poor revenue performance may overshadow the attractiveness of the dividend returns it promises. Analysts have a Hold rating on the stock, with a 1-year median price target of $20, suggesting a potential 22.55% upside.
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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