Why These Dividend Stocks are Gaining in 2025?

2. Saga Communications, Inc. (NASDAQ:SGA)

Dividend yield: 7.93%

Dividend payout ratio: 246.67%

Ex-Dividend Date: February 18, 2025

Number of Hedge Funds: 26

The year-to-date return of Saga Communications, Inc. (NASDAQ:SGA) saw an increase of 14.32% as of February 16, 2025, indicating strong performance.

During the third quarter of 2024, Saga Communications, Inc. (NASDAQ:SGA) faced sector-specific challenges that impacted their advertising budgets. However, according to Wall Street experts, the company’s strategy to focus on blended advertising that integrates the efforts from radio-based and digital-based advertisements might help achieve long-term growth. Blended advertising could increase the effectiveness of the ad, creating longer customer engagements. This may lead to growth during the further quarter into 2025.

Saga Communications, Inc. (NASDAQ:SGA) offers a dividend yield of 7.93%. While this looks attractive, the dividend payout ratio of 246.67% indicates the possible involvement of debt to finance the payouts. On the other hand, the company was a part of 26 hedge fund portfolios in our Q3 2024 database, indicating solid institutional investors’ interests. The investors, after considering the risk and finding the investment attractive, can purchase the company’s stocks on or before the ex-dividend date of February 18, 2025.