Top 10 Stocks for Dividend Capture Strategy in March 2025

7. American Eagle Outfitters, Inc. (NYSE:AEO)

Dividend Yield: 4.22%

Recovery days: 1.8 Days

No. of Hedge Funds: 33

American Eagle Outfitters, Inc. (NYSE:AEO), headquartered in Pittsburgh, Pennsylvania, is a leading apparel and accessories retailer. The company tends to taste the young adults through its American Eagle and Aerie brands. It pushes sales by focusing on quality denim and body-positive marketing. The company differentiates itself from competitors like Abercrombie & Fitch and H&M through inclusive and digital-first retail strategies. Regions served by the company include the United States, Canada, Mexico, and Asia.

American Eagle Outfitters, Inc. (NYSE:AEO)’s dividend yield of 4.22% indicates the company’s commitment to returning capital. The company’s full-year cash flow from operations crosses $470 million, as reported in the fourth quarter earnings call of 2024. It was supported by a 4% comparable sales growth, which drove the revenue for 2024 to $5.3 billion. Specifically, Aerie’s sub-brand recorded high performance in soft apparel and activewear collections. The earnings returned to shareholders through buybacks and dividends in 2024 amounted to $280 million, suggesting the company’s strong commitment to creating shareholder value.

American Eagle Outfitters, Inc. (NYSE:AEO) takes approximately 1.8 days to recover, suggesting balanced investor sentiment for the stock. Hedge fund interest is notable, with 33 funds from the Insider Monkey Q4 2024 database holding stakes. Investors aiming to benefit from the upcoming dividend should acquire shares before the ex-dividend date of April 11, 2025.