In this article, we will take a look at some of the worst-performing stocks that pay dividends.

Dividend stocks, though popular among long-term investors, often trail the broader market. Even this year, the Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, surged by nearly 4% since the start of 2025, compared with a 16.6% return of the broader market. That said, dividend stocks have previously shown less volatility in comparison to other asset classes.

A study by Ned Davis Research suggested that non-dividend-paying companies and dividend cutters have historically underperformed other asset classes. In addition, companies with no active dividend policies were not only more volatile but also lagged their peers.

According to a report by Hartford Funds, during market declines of over 10%, dividend stocks outperformed those that don’t pay dividends. The report revealed that from 1975 through March 2025, dividend stocks showed a 14.4% decline during major market drawdowns, compared with a nearly 20% drop in the broader market.

However, a different pattern has been emerging over the past few years. AI stocks are gaining traction, which is having an effect on the performance of long-term dividend stocks. Given this, we will take a look at some of the worst-performing dividend stocks in 2025.

Our Methodology

For this list, we screened for companies with a market cap of at least $2 billion with stable dividend policies. From the resultant list, we picked dividend stocks that have produced negative returns in 2025 and finally, shortlisted 11 companies showing the worst year-to-date returns. The stocks are ranked according to the decline in their share prices in 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

11. Diageo plc (NYSE:DEO)

YTD Decline in Share Price as of December 8: 29.8%

Diageo plc (NYSE:DEO) is one of the worst-performing stocks in 2025.

On December 3, UBS downgraded Diageo plc (NYSE:DEO) to Neutral from Buy and also trimmed the stock’s price target to 1,850 GBp from 2,250 GBp. The analyst noted the stock’s share price decline this year and sees continued downside risks in the US spirits market. UBS also questions the likelihood of outperformance in the first half, highlighting weakness in Tequila and Diageo’s ongoing market share losses.

Diageo plc (NYSE:DEO) reported declines this year because of sluggish sales in Latin America, under-pressure consumers in the UK and US, declining alcohol consumption among Gen Z, and the growing market of GLP-1 weight-loss drugs. However, the company’s premium brands, including Johnnie Walker, Crown Royal, Smirnoff, Baileys, and Captain Morgan, are giving a glimmer of hope as things are not completely bleak.

In fiscal Q1 2026, Diageo plc (NYSE:DEO) organic net sales were flat, and its organic volume grew by 2.9%. The company also experienced growth in Europe, Latin America and Caribbean (LAC), and Africa; however, weakness was seen in Chinese white spirits and a softer US consumer environment.

Despite these setbacks, Diageo plc (NYSE:DEO) remains upbeat on its performance in the coming year and has raised its guidance for organic sales and operating profit. The company also expects to deliver approximately $3 billion in free cash flow in 2026.

Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company that has operations in nearly 180 countries.

10. Owens Corning (NYSE:OC)

YTD Decline in Share Price as of December 8: 32.8%

Owens Corning (NYSE:OC) is one of the worst-performing dividend stocks.

On December 8, Barclays reduced its price target for Owens Corning (NYSE:OC) to $130 from $131 and kept an Overweight rating on the stock. The update came as part of the firm’s 2026 outlook, and it updated its ratings and targets across the homebuilding and building products sector. Barclays expects another year of declines in single-family housing starts, and noted that the housing market “remains far from balanced.” The analyst added that this leaves homebuilder stocks “volatile, with no cycle call to be made.”

In its earnings for the third quarter of 2025, Owens Corning (NYSE:OC) highlighted challenging market conditions, which resulted in weakening residential trends in the US, impacting the company’s volumes in repair and remodel and new construction product lines. However, the company plans to overcome these near-market dynamics by maintaining a high level of safety.

Owens Corning (NYSE:OC) Prattville, Alabama, as the location for its new shingle plant in the Southeastern US. The plant is set to serve an underserved market and improve service throughout the company’s shingle network. In addition, from a cash point of view, the company also remained committed to delivering value to shareholders. During the quarter, it returned $278 million to investors through dividends and share repurchases.

On December 4, Owens Corning (NYSE:OC) also announced a 15% hike in its quarterly dividend to $0.79 per share.

Owens Corning (NYSE:OC) is an Ohio-based company that develops and manufactures insulation, roofing, and fiberglass composites and related products.

9. Interparfums, Inc. (NASDAQ:IPAR)

YTD Decline in Share Price as of December 8: 35.7%

Interparfums, Inc. (NASDAQ:IPAR) is one of the worst-performing dividend stocks to invest in.

On November 21, Berenberg initiated its coverage on Interparfums, Inc. (NASDAQ:IPAR) with a Buy rating and $103 price target. The analyst noted that the company maintains a presence in just one beauty category, fragrance, which is just a “small” portion of a $43 billion market, providing “substantial growth runway.” Berenberg noted the company’s asset light business model, calling it “highly flexible” and has proven to be “disruptive.” The firm sees current share levels as an appealing entry point for investors.

In the third quarter of 2025, Interparfums, Inc. (NASDAQ:IPAR) saw growth in its luxury and prestige fragrance category; however, the company’s top-line growth remained stagnant because of retailer destocking, shifting consumer behavior, and tariff-related disruptions. The company retains confidence in its advertising and promotion programs, as well as portfolio evolution.

Interparfums, Inc. (NASDAQ:IPAR) reported revenue of $430 million in the third quarter of 2025, which showed a modest 1.8% growth from the same period last year. The company’s two biggest markets, North America and Western Europe, saw sales growth by 4% and 3%, respectively. The distribution challenges in South Korea and India persisted, which resulted in Asia/Pacific sales declining by 9%.

Interparfums, Inc. (NASDAQ:IPAR)’s cash position was also one of the positives for the company as it ended the quarter with $188 million in cash and cash equivalents and working capital of $688 million. Moreover, the company generated $68 million in operating cash flow in the first nine months of the year.

Interparfums, Inc. (NASDAQ:IPAR) is an American company that develops and distributes prestige fragrances as an exclusive worldwide licensee.

8. TriNet Group, Inc. (NYSE:TNET)

YTD Decline in Share Price as of December 8: 36.3%

TriNet Group, Inc. (NYSE:TNET) is one of the worst-performing dividend stocks to invest in.

On December 5, Truist initiated its coverage on TriNet Group, Inc. (NYSE:TNET) with a Hold rating and a $62 price target. The analyst noted that macroeconomic uncertainty and rising medical care utilization have created headwinds for the company, which has pressured both worksite employee levels and insurance costs. However, Truist expects the company to eventually reprice its insurance book and resume WSE growth. The firm also appreciated the company’s use of indirect channels and offshore labor, believing that it can support better growth and margins over time, but the uncertain timeline keeps Truist at a Hold recommendation.

TriNet Group, Inc. (NYSE:TNET) reported its earnings for the third quarter of 2025 on October 29, posting total revenues of $1.2 billion, down slightly by 2% from the same period last year. The company announced the launch of its go-to-market initiatives and is also close to finishing the most aggressive phase of its repricing work. This puts the company on a stronger growth trajectory for the quarters to come.

Despite facing challenges due to the uncertain SMB business environment, TriNet Group, Inc. (NYSE:TNET) recorded its highest-ever customer net promoter score, with customer retention above historical averages. The company’s cash position also remained stable with free cash flow of $191 million in the first nine months of the year, up from $154 million in the prior year period. Its operating cash flow was $242 million, up from $214 million.

TriNet Group, Inc. (NYSE:TNET) is an American company that provides Human Resources solutions for small and medium-sized businesses.

7. Kinetik Holdings Inc. (NYSE:KNTK)

YTD Decline in Share Price as of December 8: 37.2%

Kinetik Holdings Inc. (NYSE:KNTK) is among the worst-performing dividend stocks to invest in.

On December 2, Jefferies initiated its coverage on Kinetik Holdings Inc. (NYSE:KNTK) with a Buy rating and a $41 price target. The analyst noted that the company’s growth prospects are “overly discounted” after a “disappointing” fiscal 2025, some of which was driven by macro headwinds. Jefferies expects Kinetik to deliver adjusted EBITDA growth of 8% through 2030, placing it among the stronger performers in the midstream space.

Kinetik Holdings Inc. (NYSE:KNTK)’s third-quarter earnings, which were announced on November 5, came in strong with total operating revenues of $463.9 million, up 17% from the same period last year. The company’s product revenue was $357.6 million, compared with $290.4 million in the prior-year period. Kinetik reached a key milestone during the quarter, with Kings Landing officially entering full commercial service, bringing processing capacity to New Mexico. Jamie Welch, President and CEO, said that Kings Landing is regularly running above 100 million cubic feet per day, which is consistent with the company’s expectations.

Kinetik Holdings Inc. (NYSE:KNTK) also maintains a healthy cash buffer. In the most recent quarter, the company reported a distributable cash flow of $158 million and free cash flow of $50.9 million. Due to this cash position, Kinetik’s dividend coverage ratio came in at 1.3x.

Kinetik Holdings Inc. (NYSE:KNTK) is an American midstream energy company that is focused on the Permian Basin.

6. SL Green Realty Corp. (NYSE:SLG)

YTD Decline in Share Price as of December 8: 37.7%

SL Green Realty Corp. (NYSE:SLG) is among the worst-performing dividend stocks in 2025.

On December 8, Evercore ISI trimmed the firm’s price target on SL Green Realty Corp. (NYSE:SLG) to $54 from $56 and maintained an Outperform rating on the shares, following the company’s investor day. The firm said that the company “painted a positive picture of NYC’s office market, despite some setbacks.”

SL Green Realty Corp. (NYSE:SLG) announced on December 5 the acquisition of its joint venture partners’ combined 39.48% stake in 800 Third Avenue for $5.1 million. The property is a 41-story glass and steel tower situated between 49th and 50th Streets on Midtown Manhattan’s east side. With this deal, SL Green now owns the building outright.

This deal could be one of SL Green Realty Corp. (NYSE:SLG)’s notable successes in the post-COVID world. The onset of the pandemic and the introduction of work-from-home weighed on the company. However, the company adapted to the new normal by leasing its vacant properties at profitable and competitive rates. In the third quarter of 2025, SL Green reported a 92.4% growth in same-store office occupancy in Manhattan. The company expects to increase the percentage by 93.2% by December 31, 2025.

In October, SL Green Realty Corp. (NYSE:SLG) inked a $730 million contract to purchase Park Avenue Tower, located at 65 East 55th Street. This acquisition will help the company deliver stable cash flows and enhance shareholder return. SLG currently offers monthly dividends to shareholders.

SL Green Realty Corp. (NYSE:SLG) is a real estate investment trust company that primarily invests in office buildings and shopping centers in New York City.

5. WillScot Holdings Corporation (NASDAQ:WSC)

YTD Decline in Share Price as of December 8: 38.1%

WillScot Holdings Corporation (NASDAQ:WSC) is one of the worst-performing dividend stocks to invest in.

On December 5, BofA lowered its price target on WillScot Holdings Corporation (NASDAQ:WSC) to $25 from $27.50 while keeping a Buy rating on the shares. The update came after the firm met with CFO Matt Jacobsen, telling investors that its takeaways “resembled sentiment on the Q3 call,” with uneven modular demand and no clear recovery in the storage yet. Following the discussion, BofA maintained its estimates for 2025 but lowered its estimates for 2026-2027 by 4% to 6%, citing “a choppy backdrop and slower recovery warrants a more conservative stance.”

WillScot Holdings Corporation (NASDAQ:WSC) reported mixed earnings for the third quarter of 2025, with revenues of $566.8 million, down 5.75% from the same period last year. The company’s leasing revenues of $434 million also declined by 4.7% from the prior year period. It recorded lower Canadian and seasonal storage revenues on a YoY basis, which did not meet the company’s expectations. That said, the company’s EBITDA margin of 42.9% grew by 60 basis points sequentially.

In addition, WillScot Holdings Corporation (NASDAQ:WSC) generated $191 million in operating cash flow at a 33.7% margin, and its free cash flow came in at $122 million at a 21.6% margin. These healthy cash levels enabled the company to pay $84 million of outstanding debt and $21 million to shareholders in dividends and share repurchases. Moreover, WillScot also deployed $8 million towards a tuck-in acquisition.

WillScot Holdings Corporation (NASDAQ:WSC) is an American company that offers portable and modular storage services.

4. Conagra Brands, Inc. (NYSE:CAG)

YTD Decline in Share Price as of December 8: 38.38%

Conagra Brands, Inc. (NYSE:CAG) is one of the worst-performing dividend stocks to invest in.

On November 25, Goldman Sachs trimmed the firm’s price target on Conagra Brands, Inc. (NYSE:CAG) to $16 from $18 and maintained a Sell rating on the shares.

Conagra Brands, Inc. (NYSE:CAG) is down by nearly 39% since the start of 2025 due to inflationary pressures, low growth, and high debt levels. In fiscal Q1 2026, the company posted revenues of $2.63 billion, which declined by 5.81% from the same period last year. The revenue drop also included a 5.1% decrease due to the unfavorable effects of the mergers & acquisitions activity. Its organic net sales also decreased by 0.6%. However, the company gained volume shares in several other categories, including frozen desserts, refrigerated whipped topping, hot dogs, and canned tomatoes.

Conagra Brands, Inc. (NYSE:CAG) also showed confidence in its cash flow generation as the company managed to reduce its net debt by $1.1 billion, ending the quarter with net debt of $7.6 billion. This represents a 12.3% reduction in net debt versus the previous year. Its operating cash flow was $121 million, and its capital expenditures were $147 million, compared with $133 million in the same quarter last year. The company returned $167 million to shareholders through dividends.

Conagra Brands, Inc. (NYSE:CAG) is an American consumer packaged goods company that sells products under various brand names.

3. Lineage, Inc. (NASDAQ:LINE)

YTD Decline in Share Price as of December 8: 39.4%

Lineage, Inc. (NASDAQ:LINE) is one of the worst-performing dividend stocks in 2025.

On December 4, Citigroup trimmed its price target slightly on Lineage, Inc. (NASDAQ:LINE) to $38 from $39 and maintained a Neutral rating on the shares.

In its earnings for the third quarter of 2025, Lineage, Inc. (NASDAQ:LINE) highlighted seasonal gains in occupancy, with pricing trends remaining stable as expected. The company’s same-store physical occupancy grew sequentially in the quarter by 50 basis points to 75%. Moreover, it also made investments worth $127 million in growth capital, with 25 facilities in process or ramping, which is expected to increase its EBITDA by $167 million. Lineage’s overall revenue for the quarter was $1.3 billion, up 3.1% from the same period last year. It also reported a 2% YoY growth in adjusted EBITDA to $341 million.

Lineage, Inc. (NASDAQ:LINE) has expanded its presence in cold storage space by making a series of acquisitions, which have resulted in its adjusted EBITDA growing by a CAGR of 44% since 2008. The REIT has more room to grow, considering it has just entered the market in 2024, raising $4.4 billion in its IPO at an implied market value of $18 billion. What started with merely one warehouse in late 2008 has expanded significantly, growing its footprint by making over 100 acquisitions over the years.

Lineage, Inc. (NASDAQ:LINE) is a Michigan-based temperature-controlled warehouse real estate investment trust company.

2. Primo Brands Corporation (NYSE:PRMB)

YTD Decline in Share Price as of December 8: 48.7%

Primo Brands Corporation (NYSE:PRMB) is one of the worst-performing stocks in 2025.

On November 26, Miuho trimmed its price target on Primo Brands Corporation (NYSE:PRMB) to $28 from $35 and kept an Outperform rating on the shares. The update came as Nielsen scanner data pointed toward soft retail volumes and larger discounts through November 15.

On November 10, Primo Brands Corporation (NYSE:PRMB) announced that it has authorized an increase of $50 million to the company’s existing share repurchase program. This brought the total amount under the program to $300 million. The company has already repurchased approximately 4.4 million shares of its Class A common stock for approximately $97.7 million.

In the third quarter of 2025, Primo Brands Corporation (NYSE:PRMB) reported revenue of $1.76 billion, which showed a significant growth of 35% from the same period last year. The growth was mainly driven by net sales from Primo Water following the merger, along with higher volumes contributed by BlueTriton. The company’s gross margin was 29.9%, compared with 31.9% in the prior year period.

Primo Brands Corporation (NYSE:PRMB) also declared a rebound in its delivery service rate (DSR), which is back to approximately 95% and is consistent with historical levels. The company’s synergy plan is expected to achieve $200 million and $300 million run rate targets by 2025 and 2026, respectively.

Primo Brands Corporation (NYSE:PRMB) is a Florida-based branded beverage company that has an extensive portfolio of packaged branded water and beverages.

1. Bath & Body Works, Inc. (NYSE:BBWI)

YTD Decline in Share Price as of December 8: 50.33%

Bath & Body Works, Inc. (NYSE:BBWI) is among the worst-performing dividend stocks in 2025.

On November 21, Telsey Advisory analyst Dana Telsey downgraded Bath & Body Works, Inc. (NYSE:BBWI) to Market Perform from Outperform with a $17 price target, down from $38. According to the analyst, the company’s earnings for Q3 were below expectations due to sluggish sales and weaker margins, and its Q4 guidance suggests continued headwinds due to macro pressures. Telsey further said that though the company has a solid customer base, recovery is taking more time than projected, with top-line and margin improvements unlikely before the second half of 2026, limiting near-term visibility.

Though Bath & Body Works, Inc. (NYSE:BBWI) is down by over 50% since the start of 2025, the stock surged by over 3.3% from December 1 to December 8. The growth was mainly due to the company’s strong Black Friday weekend, which featured a “Buy 3, Get 4 Free” promotion. DOMO Capital wrote in a post on X:

“Bath & Body Works appears to have had a strong showing during the Black Friday weekend, driven by aggressive promotions and high foot traffic in stores with a high turnout from teens and value-driven demographics.”

These promising Black Friday sales balance off some of the challenges related to the third-quarter earnings. Bath & Body Works, Inc. (NYSE:BBWI) posted revenue of $1.6 billion in Q3, down 1% from the same period last year. Its operating income was $161 million, compared with $218 million in the prior year period. However, the company ended the quarter with $236 million available in cash and cash equivalents, up from $191 million in 2024.

Bath & Body Works, Inc. (NYSE:BBWI) is an American retail store chain that sells soaps, lotions, fragrances, and candles.

While we acknowledge the potential of BBWI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BBWI and that has 100x upside potential, check out our report about this cheapest AI stock.

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