These Were Last Week’s 10 Worst Dividend Stocks

2. Piedmont Office Realty Trust, Inc. (NYSE:PDM)

Dividend yield: 6.84%

Dividend payout ratio: 167.78%

Ex-Dividend Date: February 21, 2025

Number of Hedge Funds: 15

Piedmont Office Realty Trust, Inc. (NYSE:PDM) saw a decline in share price last week by 13.70%.

The self-managed real estate investment trust is one of the largest owners of Class A office properties in the U.S.  Piedmont Office Realty Trust, Inc. (NYSE:PDM) has faced significant write-downs for two years. Additional write-downs are also expected in their Washington, D.C. properties. Their funds from operations (FFO) are taking a new hit because of substantial moveouts even during 2025. It is expected to last throughout 2026 as well. Though spaces are being rented out, the company lags in collecting property rents. The collection period lags from 18 to 24 months. It caused a fall in its value during the last week.

The dividend yield offered by Piedmont Office Realty Trust, Inc. (NYSE:PDM) stands at 6.84%. Though attractive, the dividend is paid with a payout ratio of 167.78%. This means that the company will likely finance its dividend payouts using debt. Since the interest rates are increasing, this may depreciate the value of an investment. However, 15 hedge fund portfolios from the Insider Monkey database held on to Piedmont in Q3 2024, indicating some level of institutional investor trust. Investors interested in the portfolio can purchase it on or before the ex-dividend date of February 21, 2025.