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.
8. Americold Realty Trust, Inc. (NYSE:COLD)
Dividend Yield: 4.21%
Recovery days: 0.5 Days
No. of Hedge Funds: 27
An American company, Americold Realty Trust, Inc. (NYSE:COLD) is engaged in the business of temperature-controlled warehousing and transportation. Organized itself as a self-administered and self-managed real estate investment trust (REIT), Americold Realty Trust focuses on owning, operating, acquiring, and developing temperature-controlled warehouses. The company operates over 235 warehouses globally, earning second position as the largest publicly traded REIT.
Americold Realty Trust, Inc. (NYSE:COLD) offers a dividend yield of 4.21%. The company is working on various development initiatives, including a 37,000 pallet position expansion in Allentown, Pennsylvania, which will add 15 million cubic feet. Another project that the company is involved in is a 40000 pallet position facility in Dubai. The company expects to complete both projects before the end of the second quarter of 2025. The anticipated effect on the storage and distribution capabilities of the company translates positively among the investors in the market.
Americold Realty Trust, Inc. (NYSE:COLD)’s 0.5-day price recovery suggests a relatively quick rebound owing to positive market sentiment. As per our Insider Monkey database, 27 hedge fund portfolios held stakes in the company, as of Q4 2024, indicating a strong institutional interest in the stock. Investors interested in the next dividend payment can purchase the stock before the ex-dividend date of March 28, 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.
6. Target Corporation (NYSE:TGT)
Dividend Yield: 4.30%
Recovery days: 1.4 Days
No. of Hedge Funds: 56
Based in Minneapolis, Minnesota, Target Corporation (NYSE:TGT) is a major retail chain offering a wide range of consumer goods, including apparel, home essentials, and groceries. The company distinguishes itself from other discount retailers by creating a balance between affordability and trend-focused merchandising and private-label brands. In addition to Amazon, Walmart also poses tough competition for Target Corporation in the market. The company has over 1,956 physical stores across the United States and operates an online store.
Target Corporation (NYSE:TGT) maintains a strong dividend yield of 4.30% and appeals to both income and growth investors. The company exceeded its initial expectations with a 1.5% increase in Q4 comp sales. Company guidance for the next 5 years also remains positive, with an expectation of $15 billion in revenue growth. Specifically, the company’s digital business remains profitable, with nearly 9% growth in Q4. The figures contribute to Target Corporation’s self-sufficiency with respect to dividend payments.
Target Corporation (NYSE:TGT) has a 1.4-day recovery timeframe reflecting positive market reception. Institutional backing remains significant with 56 hedge funds listed in Insider Monkey’s Q4 2024 database invested in the stock. Interested investors purchasing the stock before the ex-dividend date of May 14, 2025, will qualify for the next dividend payment.
5. Douglas Emmett, Inc. (NYSE:DEI)
Dividend Yield: 4.68%
Recovery days: 0.5 Days
No. of Hedge Funds: 26
Douglas Emmett, Inc. (NYSE:DEI), headquartered in Santa Monica, California, is a real estate investment trust. Office and multifamily properties have been the company’s focus, and it has assets in premier coastal markets like Los Angeles and Honolulu. The company specializes in dealing with high-barrier-to-entry urban locations with strong tenant demand. It prioritizes stability and achieves it through long-term leases and prime real estate holdings.
Douglas Emmett, Inc. (NYSE:DEI) entered our list of stocks for dividend capture strategy by presenting a dividend yield of 4.68%. The company faced a fall in revenue and its FFO after the departure of Warner Brothers, alongside a low office occupancy rate. However, a 6% multifamily growth and reasonable expense control enabled the company to partly offset the resulting losses. Additionally, the residential portfolio remains fully leased at 99.1% with good demand, gaining a positive impression among investors regarding the company’s ability to cover dividend payments.
The 0.5-day recovery period of Douglas Emmett, Inc. (NYSE:DEI) points to strong market support. Insider Monkey’s Q4 2024 database contains 26 hedge funds with ownership stakes in the company. Investors looking to capitalize on the next dividend payout must purchase the stock before the ex-dividend date of March 31, 2025.
4. Chatham Lodging Trust (NYSE:CLDT)
Dividend Yield: 4.71%
Recovery days: 1.2 Days
No. of Hedge Funds: 23
Chatham Lodging Trust (NYSE:CLDT), headquartered in West Palm Beach, Florida, is a hotel REIT. The company invests in high-traffic business and leisure markets, partnering with brands like Hilton and Marriott and trying to increase its market share for upscale extended-stay and select-service properties. As of now, Chatham Lodging Trust owns 36 hotels with 5,475 rooms/suites across 15 states and the District of Columbia.
Chatham Lodging Trust (NYSE:CLDT) provides a dividend yield of 4.71%, suggesting a high commitment to shareholder returns. The revenue per available room (RevPAR) of the company, as reported in the Q4 earnings report, grew by 3% for the year and 4% in the quarter, surpassing the industry’s performance. It enabled the company to pay dividends to shareholders, amounting to $22 million in 2024. The Q1 2025 guidance estimates a RevPAR growth of 3% to 4%, which would result in an adjusted FFO per share of $1.01 to $1.11, gaining positive interpretations among investors in the market.
Investor confidence in the valuation is high, with Chatham Lodging Trust (NYSE:CLDT) recovering within 1.2 days. With 23 hedge funds holding ownership of the company’s stocks as of Q4 2024, institutional interest remains steady. Investors can qualify for the next dividend payment by acquiring shares before the ex-dividend date on March 31, 2025.
3. Alexandria Real Estate Equities, Inc. (NYSE:ARE)
Dividend Yield: 5.44%
Recovery days: 1.9 Days
No. of Hedge Funds: 36
Alexandria Real Estate Equities, Inc. (NYSE:ARE), based in Pasadena, California, is a pioneering REIT specializing in life sciences and technology-focused office campuses. The company stands apart from its peers by exclusively catering to biotech and pharmaceutical firms and developing research-centric ecosystems. The company benefits from long-term leases with industry-leading tenants and competes with competitors like Ventas, Inc., BXP Inc., and Healthpeak Properties Inc. within the U.S.
Alexandria Real Estate Equities, Inc. (NYSE:ARE) delivers a dividend yield of 5.44%, attracting investors who may be interested in the balance of income and long-term growth. The company’s FFO per share experienced a growth of 5.6% increase in 2024, reaching $9.47. The occupancy rate was the primary contributor to the increase, which stood at 94.6% for the last quarter. During the period, investors also benefitted from a capital recycling program, where $200 million worth of shares were repurchased. The company’s dividend-paying capability remains strong, with 89% and 70% of the projects to be completed in 2025 and 2026 already being leased or under negotiation.
Alexandria Real Estate Equities, Inc. (NYSE:ARE) requires approximately 1.9 days to recover, which points to stable market sentiment for the company. Hedge fund involvement is significant since Insider Monkey noted 36 funds backing the stock as of Q4 2024. Those seeking dividend benefits should ensure ownership before March 31, 2025.
2. Plymouth Industrial REIT, Inc. (NYSE:PLYM)
Dividend Yield: 5.54%
Recovery days: 0.6 Days
No. of Hedge Funds: 13
Headquartered in Boston, Massachusetts, Plymouth Industrial REIT, Inc. (NYSE:PLYM) is a real estate investment trust company. The company’s focus lies in acquiring, owning, and operating industrial properties, including warehouses and distribution centers. Remarkably, the company concentrates on secondary and tertiary U.S. markets and offers cost-effective solutions for tenants in logistics and manufacturing. It operates within the U.S. primarily focusing on Boston, Columbus, Jacksonville, and Memphis.
Plymouth Industrial REIT, Inc. (NYSE:PLYM) offers an attractive dividend yield of 5.54%, making it a viable choice for income-focused investors. In their fourth-quarter earnings call, the company announced the refinancing and upsizing of unsecured credit facilities to $1.5 billion. This enhanced their borrowing capacity, which, along with Sixth Street Investments, ensured the satisfaction of their capital needs. Additionally, the company reported a pipeline exceeding 11 million square feet and $1 billion in potential acquisitions, primarily in existing markets. The company is confident in its dividend payment capabilities since this can induce a positive reaction on the FFO.
Plymouth Industrial REIT, Inc. (NYSE:PLYM)’s recovery period stands at 0.6 days and signals resilience because of high investor confidence. Hedge fund activity remains moderate, with 13 portfolios from the Insider Monkey database holding a stake in the company at the end of Q4 2024. Those seeking dividend income should consider purchasing shares before the ex-dividend date on March 31, 2025.
1. Kilroy Realty Corporation (NYSE:KRC)
Dividend Yield: 6.25%
Recovery days: 2.0 Days
No. of Hedge Funds: 26
Kilroy Realty Corporation (NYSE:KRC), based in Los Angeles, California, is a real estate investment trust focused on Class A office spaces, particularly in tech-driven markets like the West Coast. The company prioritizes sustainable and LEED-certified developments, thus forming a customer base out of innovative industries. Kilroy Realty Corporation stands out from its competitors, like Hudson Pacific Properties, through its ESG initiatives and premium urban assets.
Kilroy Realty Corporation (NYSE:KRC) offers a high dividend yield of 6.25%, increasing its appeal to income-focused investors. The company achieved an occupancy rate of 82.8% by the end of 2024, as reported in its fourth-quarter results. Company guidance indicated that the same occupancy rate would continue into 2025, resulting in an FFO guidance of $3.85 to $4.05 per diluted share. Some major leases accomplished by the company in 2024, including a multi-floor lease with Walmart and a 274,000-square-foot lease with a global technology company, contribute to its earnings for the upcoming dividend payments.
Kilroy Realty Corporation (NYSE:KRC)’s 2-day recovery period stands higher than other entrants on our list and suggests a moderate pace of rebound. Institutional participation remains strong, with our database noting 26 hedge funds holding positions at the end of Q4 2024. Securing shares before the ex-dividend date on March 31, 2025, helps investors to benefit from the next dividend distribution.
Kilroy Realty Corporation (NYSE:KRC) ranks first on our list of top 10 stocks for dividend capture strategy in March 2025. While we acknowledge the potential for KRC 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 KRC but trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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