Why These Dividend Stocks Are Underperforming in 2025

1. The Interpublic Group of Companies, Inc. (NYSE:IPG)

Dividend yield: 4.88%

Dividend payout ratio: 72.13%

Ex-Dividend Date: March 3, 2025

Number of Hedge Funds: 26

The stocks of Interpublic Group of Companies, Inc. (NYSE:IPG) faced a decline of 3.46% YTD closing on February 14, 2025. It is underperforming the market, which grew by 4.19%. The decline in share price imitates a decrease in operating income, which went down by 6.4% from the year-ago quarter. The operating income in the last quarter came in at $567.9 million, less than the estimated $586.4 million.

Interpublic Group of Companies, Inc. (NYSE:IPG) experienced this fall despite the industry surpassing expectations. According to EMARKETER.COM, the global advertising industry reached a revenue of over $1 trillion for the first time, signaling that industrial growth is at its peak. Industrial development, in turn, attracts heavy competition from the Interpublic Group.

With many competitors using AI technologies to survive the market, Omnicom Group aims to buy the rival company Interpublic Group at 13.25 Billion to overthrow other big competitors with AI advantages. The merger will make the resulting company one of the leaders in the advertising industry and thus has garnered the attention of all the investors in the market. However, some speculate on the resulting company’s ability to match the Interpublic Group’s commitment to dividends.

Overall, Interpublic Group of Companies, Inc. (NYSE:IPG) ranks first on our list of the dividend stocks that are declining. While we acknowledge the potential for IPG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IPG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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