10 Dividend Trap Stocks to Avoid in 2025

5. HF Sinclair Corporation (NYSE:DINO)

Performance: -54.44%

Dividend Yield: 7.28%

Payout Ratio: 219.78%

A Texas-based company, HF Sinclair Corporation (NYSE:DINO) is a diversified energy company focused on refining, marketing, and producing lubricants and renewable fuels. The company has complex refineries and distribution networks across the U.S. and uses them to supply gasoline, diesel, and specialty products. HF Sinclair Corporation (NYSE:DINO) distinguishes itself from its competitors through strategic acquisitions and renewable fuel capacity. Their focus on sustainability initiatives helps with their long-term competitiveness in the sector.

HF Sinclair Corporation (NYSE:DINO)’s staggering 54.44% price drop over the past year suggests poor performance. Particularly, in the fourth quarter, the company reported a net loss of $214 million, attributable to shareholders. A significant contributor to the loss was the notable decline in the EBITDA of the refining segment. The fall in sales volume, in addition to the reduced refinery gross margins, caused the decline. Another segment that faced a fall during the period was the renewables segment. High-priced inventory drawdown heavily impacted the profitability of the segment. Uncertainty in the R&D environment alongside the new tariff rates is expected to drive the stocks further down in 2025.

HF Sinclair Corporation (NYSE:DINO) offers a generous dividend yield of 7.28%. A 219.78% payout ratio reveals unsustainable distributions. The company is paying double what it earns to shareholders, which brings it to our list of handpicked worst dividend stocks.