Why Are These 10 Dividend Stocks Declining?

2. Polaris Inc. (NYSE:PII)

Annual dividend yield: 5.88%

Ex-Dividend Date: March 3, 2025

Number of Hedge Fund Holders: 50

Quarterly dividend amount:  $0.67

One of the leading automotive manufacturers in the US, Polaris Inc. (NYSE:PII), experienced a 7.2% fall in its share value in the past five days. This was right after gaining a downgraded outlook from S&P Global. The investment research giant initially gave the company a “stable” credit rating outlook. However, on Monday, the rating was changed to “negative” based on the expectation that S&P Global Ratings-adjusted debt to EBITDA will slightly exceed the 3x downgrade threshold. Polaris Inc. (NYSE:PII) is expected to use the free cash flow to repay debt. However, according to S&P Global, reducing this debt would hugely be based on the growth of the power sports industry and the macroeconomic conditions.

Polaris Inc. (NYSE:PII) may enter the fourth quarter with its presence in 50 hedge fund portfolios, indicating interest from institutional investors. The 5.88% dividend yield of the company continues to attract investments. However, this yield could change since the downturn from the previous year, caused by macroeconomic conditions like higher interest rates, is expected till the 2nd quarter of 2025. It resulted in a downfall of revenue for the industry and Polaris by 20% last year.