Why These Dividend Stocks are Gaining in 2025?

5. Karat Packaging Inc. (NASDAQ:KRT)

Dividend yield: 5.59%

Dividend payout ratio: 85.11%

Ex-Dividend Date: February 24, 2025

Number of Hedge Funds: 7

Karat Packaging Inc. (NASDAQ:KRT) experienced an upward trend in its year-to-date return by 6.35% as of February 16, 2025. The stock performs better than the market peers, as indicated by the broader market’s year-to-date return of 3.96%. With a market capitalization of $644.38 million, the company has a 52-week high of $33.14 and a 52-week low of $23.10. The current share price of $32.18 stands close to the 52-week high, signaling a strong performance and the possibility of overvaluation.

Karat Packaging Inc. (NASDAQ:KRT)’s gross margin remained steady despite the increase in ocean freight costs, which has affected many other competitors in the market. It allowed the company to increase its gross profit by 11.7% during the third quarter of 2024, and the gross margin increased 170 basis points to 38.6%, attracting investors through operating efficiency.

Karat Packaging Inc. (NASDAQ:KRT) offers a dividend yield of 5.59% with a dividend payout ratio of 85.11%. It suggests that most earnings are used to pay dividends rather than to retain them for reinvestment. The number of hedge funds owning stakes in the company remains constant at seven throughout the last three quarters of 2024, according to Insider Monkey’s database. This indicates a moderate consistency in investors’ interest in the stock.

Investors who find the stock appealing may purchase it on or before the ex-dividend date of February 24, 2025.