These Were Last Week’s 10 Worst Dividend Stocks

1. Ardmore Shipping Corporation (NYSE:ASC)

Dividend yield: 9.12%

Dividend payout ratio: 35.29%

Ex-Dividend Date: February 28, 2025

Number of Hedge Funds: 22

Ardmore Shipping Corporation (NYSE:ASC), a logistics company engaged in the seaborne transportation of petroleum products and chemicals, experienced a decline in its share price by 9.87%.

The decline comes despite the rise in shipping demands. After ships had been rerouted from going through the Suez Canal to going around the Cape of Good Hope, the average sailing distances increased. It, in turn, increased the demand for ships. The average sailing speeds are expected to keep decreasing, and hence, the supply would also reduce, upsetting the supply/demand balance. However, the investors are aware that this high demand will reduce once the Suez Canal routes are opened again, which is expected before the end of 2025. Fluctuating demand and potentially rising operational costs cause a decline in the stock’s value.

Ardmore Shipping Corporation (NYSE:ASC) offers a dividend yield of 9.12%, backed by the dividend payout ratio of 35.29%. With this, the company can pay dividends using one-third of its earnings. Additionally, the stock is part of 22 hedge fund portfolios tracked by Insider Monkey at the end of Q3 2024. This indicates a moderate level of institutional confidence in the company. The ex-dividend date of February 28, 2025, suggests that investors seeking the company’s dividend can buy the stocks before that date.

Overall Ardmore Shipping Corporation (NYSE:ASC) ranks first on our list of last week’s 10 worst dividend stocks. While we acknowledge the potential for ASC 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 ASC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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