In this article, we will be looking into last week’s 10 best dividend stocks.
Investors focused on income have highly preferred dividend stocks for a long time because of their stability. However, these stocks have become more sensitive to the changes in the markets recently, impacting the value of the investments. Reviewing the performance of the companies now and then would allow the investors to make better investment decisions, thus protecting the investment value. Here, we have compiled a list of best performances from some of the high dividend-paying companies. Please stick with us as we count down these stocks from 10 to 1, as it may help you make informed investment decisions.
The second week of February 2025 proved favorable for multiple dividend stocks. Some companies are showing strong financial performance despite the unfavorable economic environment in the concerned industry. Many of our list’s stocks benefit from substantial earnings reports, favorable industry conditions, or market trends like easing inflation. This necessitates investors to select companies based on attractive yields and rely on the growth potential of their values in the long run.
Also Read: 10 Best Very Cheap Stocks To Buy Right Now
Many investors consider dividend stocks safe investments, mainly when the market is uncertain. Companies making consecutive dividend payments have stable cash flows. However, it is essential to remember that not all dividend stocks are created equal. Among these dividend stocks, some may perform better than others by leveraging their ability to generate sustainable earnings. These companies can maintain reasonable payout ratios, which later help them capitalize on market opportunities. Our list of last week’s top 10 dividend stocks exemplifies these traits. The list will exemplify what investors should look for when drafting their dividend-focused portfolio.
Before going through the list, it must be remembered that it is not just about celebrating the winners from last week. It also aims to create a learning opportunity for the investors. The characteristics of these high-performing dividend stocks must be studied alongside their strategies. This helps investors in gaining an understanding that enhances their portfolios. They can identify industries that are incurring high growth. They can recognize the importance of financial management in these companies. The experience obtained by investors regarding the influence of external factors on the stocks’ performances could also be invaluable.
While reviewing this list, it is crucial to remember that the stocks on the list are only one week’s performance. It does not reflect the prospects of the company. This performance could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company’s capabilities. Additional research and caution are advised before making investment decisions.
With this to remember, let’s count from 10 to 1 of last week’s 10 best dividend stocks and explore what made them stand out. The top 5 might surprise you.
Source: Unsplash
Our Methodology:
We came up with our list of last week’s 10 best dividend stocks by analyzing the market performance from February 10 to February 14. Our focus was on companies meeting two key criteria: a minimum dividend yield of 2% and a share price increase of at least 3% during the period. With this, we selected the stocks combining substantial dividend payouts and short-term growth, offering our readers a curated list of high-performing investment opportunities. The stocks are ranked according to their dividend yields.
Also, at Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Seagate Technology Holdings plc (NASDAQ:STX)
Dividend yield: 2.79%
Dividend payout ratio: 51.27%
Ex-Dividend Date: March 19, 2025
Number of Hedge Funds: 46
Last week, from February 10 to February 14, 2025, the stock of Seagate Technology Holdings plc (NASDAQ:STX), an American-based data storage company, increased by 3.62%.
In the recent quarter ending December 27, 2024, the company reported a revenue of $2.3 billion, an increase from the $1.6 billion revenue of the same quarter, the previous year. The increasing demand for high-capacity nearline HDDs has heavily contributed to this increase in revenue. The company’s earnings call indicated high performance into the second quarter of 2025. The recent increase in revenue and anticipated revenue for 2025 has been attracting income-focused investors to the company. In addition to that, Seagate Technology Holdings plc (NASDAQ:STX) has agreed to a deal to acquire Intevac, Inc. for $4.00 per share in cash, plus additional dividends, totaling $119 million.
Seagate Technology Holdings plc (NASDAQ:STX) offers a dividend yield of 2.79%. The dividend payout ratio of the company is 51.27%. Nearly half of its earnings are utilized to make dividend payments. The company retains the remaining earnings to invest in its expansion and business opportunities. The ownership of stakes in the company by 46 hedge fund portfolios, tracked by Insider Monkey, points to high institutional support for Seagate Technology Holdings plc stock. Income-focused investors can purchase shares before March 19, 2025, to qualify for dividends.
9. Molson Coors Beverage Company (NYSE:TAP)
Dividend yield: 3.11%
Dividend payout ratio: 32.90%
Ex-Dividend Date: February 27, 2025
Number of Hedge Funds: 34
The Canadian multinational beverage manufacturer, Molson Coors Beverage Company (NYSE:TAP) experienced an 11.16% rise in stock value from February 10 to February 14, 2025.
The stock price increased after the company announced it would expand its dividend from last year’s comparable payment on March 14 to $0.47. The fourth quarter revenue of $2.74 billion further exceeded the market estimates for the company. Since the dividend payout ratio of Molson Coors Beverage Company (NYSE:TAP) stands low at 32.90%, analysts predict that the company could easily cover the reported increase in dividends, making it more attractive to income-focused investors in the market. This stock also ranks 8th among our 10 best dividend-paying beverage stocks.
Molson Coors Beverage Company (NYSE:TAP)’s dividend yield stands at 3.11% after the announcement that it will increase its dividends. With the low dividend payout ratio, the company retains its earnings for debt repayments and reinvestments. Analysts believe this would further boost the sales volume from the current trading volume of 6.12 million. Insider Monkey database indicated that 34 hedge fund portfolios held stakes in the company at the end of Q3 2024. It reflects strong institutional confidence in its shares. Investors seeking dividend income could purchase the stock of Molson Coors Beverage Company (NYSE:TAP) before the ex-dividend date of February 27, 2025.
8. Microchip Technology Incorporated (NASDAQ:MCHP)
Dividend yield: 3.15%
Dividend payout ratio: 317.72%
Ex-Dividend Date: February 24, 2025
Number of Hedge Funds: 37
Between February 10 and February 14, 2025, shares of Microchip Technology Incorporated (NASDAQ:MCHP) appreciated by 6.33%.
The company is engaged in developing and selling innovative and controlled solutions in the U.S. and in many parts of Europe and Asia. Though the reported earnings per share of $0.13 of the company stands low compared to the consensus estimate of $0.15, the investors hold a positive view of the stocks. The rising demand for semiconductors in the automotive sector and industrial applications contributes to a positive outlook. Additionally, the performance of the extensive product range, including the Total System Solution offered by the company, contributes to its growth.
Microchip Technology Incorporated (NASDAQ:MCHP) offers a dividend yield of 3.15%. The company uses a dividend payout ratio of 317.72% to back this yield. The high yield suggests a risky investment since the company uses 3 times its earnings to pay dividends. The company’s shares are held by 37 hedge fund portfolios monitored by Insider Monkey at the end of Q3 2024. It signals significant institutional interest in the stocks of Microchip Technology Incorporated. Income-focused investors should consider buying shares before the ex-dividend date of March 13, 2025, if they want to benefit from the dividend payment on March 7, 2025.
7. Phillips 66 (NYSE:PSX)
Dividend yield: 3.53%
Dividend payout ratio: 90.18%
Ex-Dividend Date: February 24, 2025
Number of Hedge Funds: 40
The stock price of Phillips 66 (NYSE:PSX) climbed by 5.32% over the last week from February 10 to February 14, 2025.
The company has been increasing its ownership of DCP midstream to achieve its EBITDA goal of $14 billion before the end of 2025. Additionally, the company’s advancement in low-carbon fuels also contributes to its market value growth. As part of the advancement, Phillips 66 (NYSE:PSX) signed an agreement to supply sustainable aviation fuel (SAF) to United Airlines at Chicago O’Hare International Airport (ORD) and Los Angeles International Airport (LAX). The agreement initially involved a supply of 3 million gallons of SAF for use at ORD. However, both parties expect an increase in the supply to 8 million gallons through the first half of 2025, creating value for the company.
Phillips 66 (NYSE:PSX) offers a dividend yield of 3.53%, with a dividend payout ratio of 90.18%. Though the company covers its dividend payments with earnings, the payout ratio suggests that it can retain less than 10% of its profits. With 40 hedge fund portfolios owning stakes in the company at the end of Q3 2024, as per Insider Monkey, institutional interest in the stock appears stronger than most companies on our list. Dividend-focused investors can purchase shares before February 24, 2025, the ex-dividend date.
6. Danaos Corporation (NYSE:DAC)
Dividend yield: 4.05%
Dividend payout ratio: 11.08%
Ex-Dividend Date: February 24, 2025
Number of Hedge Funds: 12
Last week, February 10 through February 14, 2025, the shares of Danaos Corporation (NYSE:DAC) saw a 4.64% growth in value, mainly due to its operating revenue increasing by 3.6% to $258.2 million during the fourth quarter of 2024.
One of the largest owners of containerships in the world, Danaos Corporation (NYSE:DAC), has raised a new $850 million syndicated loan facility. The amount is to finance all vessels under construction fully. It highlighted the company’s interest in modernizing the fleet and expanding it to meet the rising demands. Another significant contributor to the rise in value was the repurchases. Danaos Corporation repurchased an additional $45.6 million in stock since the last earnings release. This brought the total buybacks to $168.8 million. Since it stands close to the authorized amount of $200 million, the stock is gaining attention from income opportunity-seeking investors in the market.
Danaos Corporation (NYSE:DAC) offers a dividend yield of 4.05%. The company’s dividend payout stands low at 11.08%, indicating that the company can fund its dividend payments with fractions of its earnings. Insider Monkey reported that 12 hedge fund portfolios had positions in the company at the end of Q3 2024, suggesting moderate institutional backing. Investors aiming to benefit from March 5, 2025, dividend payments may purchase shares on or before March 13, 2025.
5. Cable One, Inc. (NYSE:CABO)
Dividend yield: 4.07%
Dividend payout ratio: 26.19%
Ex-Dividend Date: February 18, 2025
Number of Hedge Funds: 24
The American-based broadband communications provider, Cable One, Inc. (NYSE:CABO) achieved a 4.43% rise in its stock value last week, from February 10 to February 14, 2025.
The company took a bold step by amending its strategic agreement with Mega Broadband Investments (MBI). It paved the way for potential full ownership. With 45% already in hand, Cable One, Inc. (NYSE:CABO) can call the remaining 55% as early as Q3 2025, offering strategic flexibility. However, the estimated purchase price of $410-550 million and the projected $845-895 million in debt raise concerns. Last week, the company announced the hosting of a conference call on February 27, 2025. The call will primarily focus on the fourth quarter and full-year results of 2024.
Cable One, Inc. (NYSE:CABO) offers a dividend yield of 4.07% with a dividend payout ratio of 26.19%. The low dividend payout ratio indicates that the company generates more than sufficient earnings to pay dividends to shareholders. The ability to retain close to three-fourths of its earnings suggests the capability of the company to cover its debts. According to Insider Monkey, 24 hedge fund portfolios were invested in the company at the end of Q4 2024. It represents a strong institutional confidence. Investors interested in dividends can secure shares ahead of the February 18, 2025, ex-dividend date.
4. Elme Communities (NYSE:ELME)
Dividend yield: 4.23%
Dividend payout ratio: 196.72%
Ex-Dividend Date: March 19, 2025
Number of Hedge Funds: 19
A 10.95% increase was recorded in the value of Elme Communities (NYSE:ELME) from February 10 to February 14, 2025. The company is engaged in the business of owning and operating built communities.
The 10 K report released by the company recorded a growth in revenue by 6.8% to $223.6 million. The higher rental income and the acquisition of Elme Druid Hills contributed heavily to the revenue growth. The company also announced its focus on owning apartment communities in high rental income generating neighborhoods like Washington, DC metro and Sunbelt regions. As of the fourth quarter, Elme Communities (NYSE:ELME) owns 28 apartment communities and one office property, contributing to the recent increase in the company’s value.
The dividend yield of the stock has been set at 4.23%. The company backs this with a dividend payout ratio of 196.72%. Leveraging close to 2 times its earnings for dividend payments raises concerns regarding the company’s debt structure and reinvestment capabilities. Even so, Elme Communities (NYSE:ELME) enjoys a solid institutional interest, with 19 hedge fund portfolios tracked by Insider Monkey holding stakes at the end of Q3 2024. Dividend-seeking investors should buy shares before the ex-dividend date, March 19, 2025.
3. APA Corporation (NASDAQ:APA)
Dividend yield: 4.24%
Dividend payout ratio: 14.20%
Ex-Dividend Date: April 22, 2025
Number of Hedge Funds: 30
During the week spanning February 10 to February 14, 2025, the independent energy company APA Corporation (NASDAQ:APA) gained 5.28% in value.
The fourth quarter production of barrels of oil equivalent (BOE) per day was expected to increase after consecutive raises in the previous quarters. In the third quarter of 2024, APA produced 467,000 BOE per day. This was about 2% higher than its guidance. With this, the anticipated increase in the fourth quarter is expected to be the highest of the year. Additionally, the company announced its plans to invest $2.5 billion to $2.6 billion in capital in 2025. Income-focused investors find the news exciting, which is reflected in last week’s company’s value.
The dividend yield offered by APA Corporation (NASDAQ:APA) is around 4.24%. The company covers this yield with a dividend payout ratio of 14.20%. With most of its earnings retained by the company, the potential of APA Corporation in debt repayment and reinvestments is high. Thirty hedge fund portfolios, monitored by Insider Monkey, held stakes in the company at the end of Q3 2024, demonstrating considerable institutional faith in the stocks of APA Corporation. Dividend-focused investors can consider investing before the ex-dividend date of April 22, 2025, if they want to benefit from the dividend payment on May 22, 2025.
2. CBL & Associates Properties, Inc. (NYSE:CBL)
Dividend yield: 4.85%
Dividend payout ratio: 85.56%
Ex-Dividend Date: March 13, 2025
Number of Hedge Funds: 20
The stocks of CBL & Associates Properties, Inc. (NYSE:CBL) incurred an 8.58% increase in their value last week between February 10 and February 14, 2025. This growth was largely due to the financial performance of the company and its new executive compensation plan.
The American-based real estate investment trust saw strong financial results in the fourth quarter of 2024, including positive same-center net operating income (NOI) growth. With its new 2025 Annual Incentive Compensation Plan (2025 AIP) and the 2025 Long Term Incentive Compensation Program (LTIP), CBL & Associates Properties, Inc. (NYSE:CBL) has brought revisions to its compensation frameworks. The new plan aims at incentivizing the executives based on the achievement of corporate goals and individual performance goals. This creates a balance between the quantitative and qualitative objectives of the company, thus attracting investors seeking stable income.
CBL & Associates Properties, Inc. (NYSE:CBL) offers a dividend yield of 4.85%. The dividend payout ratio of the company stands high at 85.56% indicating that most of the earnings are used for making dividend payments. Twenty hedge fund portfolios, followed by Insider Monkey, owned stakes in the company at the end of Q3 2024, indicating solid institutional interest in its stocks. Income-focused investors can invest in the company’s shares on or before the ex-dividend date of March 13, 2025.
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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