Why These Dividend Stocks Are Underperforming in 2025

7. Scorpio Tankers Inc. (NYSE:STNG)

Dividend yield: 3.63%

Dividend payout ratio: 12.17%

Ex-Dividend Date: March 7, 2025

Number of Hedge Funds: 33

As of February 15, 2025, Scorpio Tankers Inc. (NYSE:STNG) has experienced a year-to-date decline of 11.19%, with shares currently trading at $44.13. The downturn can be attributed to the challenges prevailing in the shipping sector. Though AI shipping applications could benefit the industry, tanker rates are still declining. Their oversupply in Europe, as well as the ongoing refinery maintenance, is seen as the major contributor to this downfall.

Further following the recent earnings announcement, Scorpio Tankers Inc. (NYSE:STNG) reached a new 52-week low of $44.88 on February 14, 2025. Bank of America has adjusted its price target to $52, maintaining a “Neutral” rating after a significant year-over-year decline in earnings and revenue

Scorpio Tankers Inc. (NYSE:STNG) offers a dividend yield of 3.63% with a payout ratio of 12.17%. The upcoming ex-dividend date is March 7, 2025. As of now, 33 hedge funds hold positions in Scorpio Tankers. It reflects sustained institutional interest in the company despite the decline in the share price.

Scorpio Tankers Inc. (NYSE:STNG) faced headwinds that were familiar to the industry. The recent stock underperformance reduces its charm among investors. However, its attractive dividend yield and positive analyst outlook indicate recovery potential in the long term.