Why These Dividend Stocks Are Underperforming in 2025

2. Portland General Electric Company (NYSE:POR)

Dividend yield: 4.80%

Dividend payout ratio: 58.21%

Ex-Dividend Date: March 24, 2025

Number of Hedge Funds: 26

A publicly owned energy company, Portland General Electric Company (NYSE:POR), is an underperforming dividend-payer, with a share price that has declined by 4.54% year-to-date, closing on February 14, 2025.

After the closure of the Boardman Coal Plant in 2020, Portland General Electric Company (NYSE:POR) faced changes in its business operations. Boardman Coal Plant was a significant source of power generation for the company. Alternatively, the company started leaning heavily on fossil fuel generation and wholesale spot-market purchases to compensate for the intervals in renewable energy sources. The transition resulted in earnings fluctuations influenced by the changes in fuel costs and market prices.

Portland General Electric Company (NYSE:POR) may benefit from the AI wave because of the rising electricity demand induced by AI-driven data centers. The demand has the potential to boost the company’s revenues. However, it risks facing environmental regulation issues and congestion costs.

Portland General Electric Company (NYSE:POR) has a dividend payout ratio of 58.21%. However, its position in the number of hedge fund portfolios has begun to decrease after the third quarter of 2024. Even so, AI-driven data centers may favor the company’s growth. Thus, despite declining share prices, the company maintains a positive outlook among the analysts.