These 10 Dividend Stocks are Underperforming in 2025

5. Polaris Inc. (NYSE:PII)

Dividend yield: 5.97%

Ex-Dividend Date: March 3, 2025

Number of Hedge Funds: 26

Polaris Inc. (NYSE:PII) is an automotive manufacturer headquartered in Minnesota, U.S. The company designs, manufactures, and sells off-road vehicles. This includes All-terrain vehicles (ATVs), side-by-side vehicles, utility vehicles, snowmobiles, and other power-sport vehicles. The company also deals with parts and accessories for automotive and apparel. The company serves many regions through independent dealers, distributors, and online networks, including the U.S., the U.K., France, China, and India.

The company saw a 23.18% decline in its share price in 2025, ending February 28. The company’s plans to reduce production contribute to its decline. The plan was part of a strategy to match production with demand, reducing inventory-related costs. However, it was negatively received by the investors, though it allowed the company to achieve $200 million in structural savings. Polaris Inc. (NYSE:PII)’s EPS, as reported in the Q4 earnings call, recorded a decline of 54% year-over-year to $0.92. However, the company has a positive outlook fueled by introducing new product innovations such as the Indian Motorcycle Scout and RZR Pro.

Polaris Inc. (NYSE:PII) offers a dividend yield of 5.97%. However, this attractive yield is overshadowed by an unsustainable 135.38% payout ratio, signaling the possible use of debts in future payouts. However, with 26 hedge funds invested as of Q4 2024, the institutional sentiment remains cautious.

Analysts still see a 17.43% upside to a 1-year price target of $52, maintaining a consensus Hold rating. Investors who purchased stock before March 3, 2025, were eligible for the dividend payout on March 17, 2025.