These Were Last Week’s 10 Best Dividend Stocks

1. Karat Packaging Inc. (NASDAQ:KRT)

Dividend yield: 5.38%

Dividend payout ratio: 85.11%

Ex-Dividend Date: February 24, 2025

Number of Hedge Funds: 7

Karat Packaging Inc. (NASDAQ:KRT) recorded a 5.66% gain in its stock value over the week ending February 14, 2025.

The specialty distributor and manufacturer of a wide range of disposable food service products and related items remains steady in its financial performance despite the ocean freight costs affecting the competitors in the broader market. It led to a consistent increase in its value. Additionally, on February 13 last week, the company announced the board of directors’ approval to pay a regular quarterly dividend of $0.45 per share on the company’s common stock. It is interpreted as an increase when compared against the previous quarterly dividend of $0.40 per share.

Karat Packaging Inc. (NASDAQ:KRT) offers a dividend yield of 5.38%, supported by a dividend payout ratio of 85.11%. Though it means less retained earnings for the company, the payout ratio indicates that the company generates sufficient revenue to cover its dividend payments. Insider Monkey reveals that seven hedge fund portfolios have positions in the company, as of Q3 2024, suggesting average institutional interest in the company’s stock. Investors seeking dividend income can buy shares before February 24, 2025. The company will release dividends to its shareholders on February 28, 2025.

Overall Karat Packaging Inc. (NASDAQ:KRT) ranks first on our list of last week’s ten best dividend stocks. While we acknowledge the potential for KRT as an investment, our conviction lies in the belief that some AI stocks hold greater 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 KRT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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