Why These Dividend Stocks Are Underperforming in 2025

4. Reynolds Consumer Products Inc. (NYSE:REYN)

Dividend yield: 3.84%

Dividend payout ratio: 54.55%

Ex-Dividend Date: February 14, 2025

Number of Hedge Funds: 21

A leading manufacturer and seller in the consumer products sector, Reynolds Consumer Products Inc. (NYSE:REYN), saw an 11.3% fall in its stock value year-to-date (YTD), closing on February 14, 2025. The company’s earnings per share also slightly falls behind the market estimates.

With the rising cost of aluminum—a significant raw material in Reynolds Consumer Products Inc. (NYSE:REYN) books—the company finds it challenging to safeguard its profit margin. The company’s net income during the third quarter of 2024 declined 11.68% year over year.

The consistency in the dividend policy, however, enables Reynolds Consumer Products Inc. (NYSE:REYN) to maintain the trust of its shareholders. Despite the falling stock value, the payout ratio of approximately 55% of its earnings per share stands above the average dividend payout ratio of 43.2%.

Though the declining share value alerts the investors, the consistent dividend policy and attractive payout ratio may make the stock seem like an opportunity for those focused on consistent income.