Why Are These 10 Dividend Stocks Declining?

5. The J. M. Smucker Company (NYSE:SJM)

Annual dividend yield: 4.18%

Ex-Dividend Date: February 14, 2025

Number of Hedge Fund Holders: 31

Quarterly dividend amount:  $1.08

The J. M. Smucker Company (NYSE:SJM), a bonafide presence in the portfolio of dividend investors as they maintain a consistent dividend payout policy, has seen a significant decline of over 4% in the last five trading days as it announced its plan to sell its packaged pastries brand Cloverhill and cinnamon rolls as a part of their cost-cutting measures. Dan O’Leary, senior vice president made the following comment about this:

“This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity.”

The following transaction will likely be completed by the end of the fourth quarter. The food and beverage manufacturer declared a dividend of $1.08 per share, scheduled for March 3, 2025. The J. M. Smucker Company (NYSE:SJM) also maintains a very high dividend payout ratio of 87.5%. According to the Insider Monkey database, 31 hedge fund portfolios held the company at the end of the third quarter, and there was a steep decline from 37 in the first quarter.