This article will count down the top 10 stocks for dividend capture strategy in March 2025.
We are navigating a sea of uncertainty in the current financial environment, which has emerged due to recent policy decisions by the new U.S. presidency. According to CNBC, as of March 14, 2025, in a period of three weeks, the U.S. stock market recorded historical turbulences, reporting a loss of approximately $5 trillion in value. The decline is attributed to aggressive trade policies and escalating tariffs. According to Barclays strategist Emmanuel Cau, this has heightened investor fears.
“Our interactions with clients indicate that the mood music is changing. While many see recession talk as premature, concerns about erratic policy from the new administration abound, with the ‘uncertainty tax’ hitting growth expectations.”
Proper investment strategies are required to attain stability and reliable returns amid such market volatility.
READ ALSO: 15 Best Low-Priced Dividend Stocks to Buy Now
In this context, dividend-paying stocks have risen as a haven for investors looking to mitigate risk without compromising a steady income stream. Consistent dividend-distributing companies have often exhibited financial robustness with the aim of upholding their commitment to shareholder value. In other words, dividend stocks are relied upon for stable income during turbulent market periods when investors cannot be certain of capital gains. The current market environment reflects such turbulent periods, diverting income-seeking investors toward dividend-paying stocks.
Additionally, when compared against the non-dividend paying stocks, the dividend equities tend to be less volatile. For investors, the consistency in the income offered by these stocks is a cushion, safeguarding them from market downturns. In this regard, these stocks can introduce stability to a portfolio, which would otherwise be heavily affected by market fluctuations. As a result, investors can preserve capital and still participate in the equity markets.
The dividend season is closing up. Among the strategies that enhance the investment value in dividend-paying stocks, the dividend capture strategy is often preferred, which involves purchasing dividend-paying stocks just before the ex-dividend date and selling shortly after. The strategy is especially attractive now, as concerns over tariffs and their impact on the U.S. economy continue to rise.
Also, companies with a history of growing dividends have often delivered higher returns with less volatility. Such performance raises the benefits of incorporating dividend-paying stocks into our investment strategy, especially during the current period when market value has declined to $46.78 trillion.
Our curated list of 10 stocks for dividend capture strategy in March 2025 offers a few choices that could potentially strengthen the portfolio of investors interested in dividend-paying stocks and looking to restructure their portfolios. In this article, in addition to ranking the stocks, we have also dived deeper into the reasons behind their position on our list since this enables investors to make informed decisions.
Stay tuned as we count down from 10 to 1, the top stocks worth the dividend capture strategy in March 2025. The top 5 might surprise you.
Image by Nattanan Kanchanaprat from Pixabay
Our Methodology
We compiled our list based on a few criteria to maximize the benefits for the investors interested in employing the dividend capture strategy. The primary criterion was the minimum dividend yield. We did not include stocks with a dividend yield of less than 3% in our list, as this ensures that our list is comprised of only high-dividend stocks. In addition to this, we included stocks with a recovery period of no more than two days, meaning that the share price typically rebounds quickly after the ex-dividend date, thereby reducing downside risk. We ranked the stocks based on their yield to prioritize those with the highest returns for the investors. This approach ensures investors can focus on stocks that provide the best potential income. We have also taken into account the number of hedge funds backing the stocks to cover the institutional interests.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Independence Realty Trust, Inc. (NYSE:IRT)
Dividend Yield: 3.07%
Recovery days: 0.9 Days
No. of Hedge Funds: 25
Headquartered in Philadelphia, Pennsylvania, Independence Realty Trust, Inc. (NYSE:IRT) is a real estate investment trust specializing in multifamily apartment communities across high-growth U.S. markets. The company focuses solely on residential properties. It targets middle-income renters with affordable housing located in convenient and comfortable places. With the company, the importance is placed on portfolio optimization in addition to operational efficiency.
Independence Realty Trust, Inc. (NYSE:IRT) offers a dividend yield of 3.07%, the lowest on our list of stocks for dividend capture strategy in March 2025. Even so, the company presents a consistent income opportunity for shareholders. As of Q4 2024, it achieved a core FFO per share of $1.16, which was at the high end of its guidance for the year 2024. The fourth quarter earnings call highlighted the company’s plans to renovate 2,500 to 3,000 units and acquire $240 million in properties with a mid-5s economic cap rate, which would further improve the core FFO, leading to positive expectations for the dividend stock.
Independence Realty Trust, Inc. (NYSE:IRT)’s quick 0.9-day recovery reflects investor confidence. Hedge fund involvement is notable, with 25 funds from the Insider Monkey Q4 2024 database maintaining stakes. To receive the next dividend, investors should purchase shares before the ex-dividend date of March 28, 2025.
9. InvenTrust Properties Corp. (NYSE:IVT)
Dividend Yield: 3.28%
Recovery days: 1.9 Days
No. of Hedge Funds: 22
InvenTrust Properties Corp. (NYSE:IVT), based in Downers Grove, Illinois, is a retail-focused real estate investment trust. The company specializes in open-air shopping centers anchored by grocery stores. Unlike mall-based REITs, InvenTrust prioritizes necessity-based retail, which allows the company to ensure stabilized and consistent foot traffic. The company competes with competitors like Regency Centers and Kimco Realty for market share, by making strategic investments in high-growth U.S. Sun Belt markets.
InvenTrust Properties Corp. (NYSE:IVT) delivers a dividend yield of 3.28%. Though comparatively less than many of the other entrants on our list, the company has positioned itself as a stable income-generating investment by achieving a 5% growth in its core FFO in both the fourth quarter and the full year 2024. The Q4 earnings results also reported the acquisition of eight properties for $282 million in 2024. With these properties, the company has expanded its portfolio with high-quality assets, thus adding further resilience to its ability to cover dividend payments.
With a 1.9-day recovery period, InvenTrust Properties Corp. (NYSE:IVT) exhibits a slightly slower rebound compared to some of the other companies on our list. Institutional interest remains moderate, with Insider Monkey noting 22 hedge funds holding positions, as of Q4 2024. Investors interested in receiving the subsequent dividend distribution must complete their purchases before the ex-dividend date on March 31, 2025.