Why These Dividend Stocks are Gaining in 2025?

6. Amcor plc (NYSE:AMCR)

Dividend yield: 5.06%

Dividend payout ratio: 91.20%

Ex-Dividend Date: February 26, 2025

Number of Hedge Funds: 18

Amcor plc (NYSE:AMCR), a global packaging company, found a 7.01% surge in its year-to-date return ending February 16, 2025, indicating a high performance from the company.

The recent developments in its planned merger with Berry Global significantly contribute to the high performance. Both companies have filed a definitive joint proxy statement with the U.S. Securities and Exchange Commission (SEC), and the merger is anticipated to result in a key competitor in the consumer and healthcare packaging solutions market. The value of the synergies expected to be created by the company post-merger stands at $650 million, making Amcor’s stocks an undervalued opportunity.

The dividend yield offered by Amcor plc (NYSE:AMCR) stands at 5.06%. The company intends to pay this dividend through a payout ratio of 91.20%. While this eliminates the risk of debt in dividend payments, it raises concerns regarding the company’s funding for future investment strategies. The number of hedge funds holding on to the stocks as of the third quarter 2024 amounts to 18. This represents moderate interest in the company among institutional investors.

The ex-dividend date is set as February 26, 2025. Investors may go for the stocks before then, but after weighing the dividend yield benefits against the future investment strategies of the company.