15 Worst Performing Dividend Stocks YTD

Published on September 13, 2023 at 8:12 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 15 worst performing dividend stocks year-to-date. You can skip our detailed analysis of dividend stocks and their performance this year, and go directly to read 5 Worst Performing Dividend Stocks YTD.

In 2023, dividend-paying stocks have not performed as well as other types of investments because many investors are showing a stronger preference for technology stocks. However, investment patterns change over time due to shifts in market sentiment and various economic factors. The US economy is uncertain this year due to unpredictable inflation. The latest CPI report showed that inflation increased in August from the same period last year, reversing the recent trend of slowing inflation. Compared to a year ago, it went up by 4.3%, which is in line with expectations and represents the smallest increase in almost two years.

Because of the continuing economic uncertainty, the growth of dividends in the US slowed down during the second quarter of 2023. This deceleration in the country’s dividend growth resulted in a total of $148 billion worth of payouts, up modestly by 4.6% year-on-year when considering the core performance after accounting for lower one-time special dividends, according to the latest report by Janus Henderson. In general, dividend stocks haven’t performed that well this year. The S&P 500 Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, gained 2.33% this year so far, underperforming the tech-heavy NASDAQ, which delivered a 33.06% return to shareholders since the start of 2023.

Also read: 15 Worst Performing Growth Stocks in 2023

As the ongoing inflationary period continues to extend its course, dividend stocks can be a reassuring choice for concerned investors. Historical analysis also shows that dividend stocks have given a solid performance during periods of economic downturns. This is because dividend stocks are a defensive investment choice these equities tend to raise their dividend payments over time, which can help offset the effects of rising prices. In one of our previous articles, we cited Fidelity Investments’ data and mentioned that dividends accounted for more than half of the market’s returns in periods of high inflation. The report also noted that in the 1940s, 1960s, and 1970s, dividends made up 67%, 44%, and 73% of market returns, respectively. In those decades, when inflation averaged over 5%, total returns were below 10%.

As mentioned above, tech stocks have dominated the market this year, surpassing dividend-paying companies. Even some of the biggest dividend companies such as The Coca-Cola Company (NYSE:KO), Colgate-Palmolive Company (NYSE:CL), and AbbVie Inc. (NYSE:ABBV) have also reported negative returns in 2023 so far. In this view, we will discuss some of the worst performing dividend stocks this year.

Photo by Jp Valery on Unsplash

Our Methodology:

For this list, we examined the worst-performing stocks of 2023 and selected dividend-paying stocks that have experienced substantial declines in their share prices so far this year. We started with a list of fifty companies by filtering them based on share price drops. From the resultant list, we picked the top 15 dividend stocks that performed the worst and arranged them in ascending order based on their share price drops as of September 13.

15. NextEra Energy Partners, LP (NYSE:NEP)

Year-to-Date Share Price Drop as of September 13: 31.16%

NextEra Energy Partners, LP (NYSE:NEP) is an American publicly traded limited partnership that operates in the energy sector, with a specific focus on renewable energy and infrastructure. In the first half of the year, the company’s funding strategy affected its share price significantly. Even though it announced a new plan to address these concerns, the share price continued to face challenges. The stock is down by 31.16% year-to-date, which makes it one of the worst performing dividend stocks on our list.

In addition to NEP, some prominent dividend companies like The Coca-Cola Company (NYSE:KO), Colgate-Palmolive Company (NYSE:CL), and AbbVie Inc. (NYSE:ABBV) also declined this year.

At the end of Q2 2023, 23 hedge funds tracked by Insider Monkey reported having stakes in NextEra Energy Partners, LP (NYSE:NEP), compared with 24 in the previous quarter. The collective value of these stakes is over $285 million.

14. Comerica Incorporated (NYSE:CMA)

Year-to-Date Share Price Drop as of September 13: 31.17%

Comerica Incorporated (NYSE:CMA) is an American financial services company that provides a range of banking and financial products and services to its consumers. The stock has lost about 31% since the start of the year, which makes it one of the worst performing dividend stocks on our list. One of the main reasons for the stock’s decline is the uncertainty in the regional banking sector, following the collapse of big banks earlier in March.

Comerica Incorporated (NYSE:CMA) currently pays a quarterly dividend of $0.71 per share and has a dividend yield of 6.22%, as recorded on September 13.

As of the close of Q2 2023, 46 hedge funds tracked by Insider Monkey reported owning stakes in Comerica Incorporated (NYSE:CMA), the same as in the previous quarter. The overall value of these stakes is over $658 million. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q2.

13. KeyCorp (NYSE:KEY)

Year-to-Date Share Price Drop as of September 13: 33.16%

KeyCorp (NYSE:KEY), a regional bank holding company, declined by 33.16% since the start of 2023. Just like CMA, the fall in KeyCorp’s share price is mainly due to the banking crisis that started in March and has affected the banking sector overall. Due to this, KEY is one of the worst-performing dividend stocks on our list.

KeyCorp (NYSE:KEY) has been raising its dividends for 12 consecutive years and currently offers a quarterly dividend of $0.205 per share. As of September 13, the stock has a dividend yield of 6.87%.

The number of hedge funds tracked by Insider Monkey owning stakes in KeyCorp (NYSE:KEY) jumped to 49 in Q2 2023, from 34 in the previous quarter. The consolidated value of these stakes is over $334 million.

12. Pfizer Inc. (NYSE:PFE)

Year-to-Date Share Price Drop as of September 13: 33.3%

Pfizer Inc. (NYSE:PFE) is a New York-based pharmaceutical and biotech company. Though the company has a strong dividend growth streak of 13 years, the share price still declined by 33.3% in 2023 so far. The negative returns are due to the uncertainty around the company’s Covid-19 vaccine sales. In its most recent quarter, the company announced a 54% year-over-year decline in its revenues given the falling demand for its pandemic-related products.

As of the close of Q2 2023, 73 hedge funds tracked by Insider Monkey reported having stakes in Pfizer Inc. (NYSE:PFE), which remained unchanged from its previous quarter. The consolidated value of these stakes is over $1.5 billion. With over 17.4 million shares, Citadel Investment Group was the company’s leading stakeholder in Q2.

11. V.F. Corporation (NYSE:VFC)

Year-to-Date Share Price Drop as of September 13: 34.7%

An American global apparel and footwear company, V.F. Corporation (NYSE:VFC) is next on our list of the worst performing dividend stocks this year. Since the start of 2023, the stock has fallen by 34.7%. In December 2022, the company’s chief executive officially stepped down from his presidency. In the most recent quarter, it gave a modest outlook for the fiscal year due to ongoing weaknesses in its wholesale business. In February this year, the company also slashed its dividend by 41.2% and currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 6.83%.

At the end of June 2023, 26 hedge funds in Insider Monkey’s database reported having stakes in V.F. Corporation (NYSE:VFC), down from 28 in the previous quarter. The collective value of these stakes is over $426.2 million.

10. International Flavors & Fragrances Inc. (NYSE:IFF)

Year-to-Date Share Price Drop as of September 13: 35.5%

International Flavors & Fragrances Inc. (NYSE:IFF) is an American company that creates and produces a wide range of flavors, fragrances, and other related ingredients. The stock has been experiencing a decline since the start of 2023 due to financial uncertainty and slow volume growth. In 2023 so far, the stock has fallen by 35.5%, which makes it one of the worst dividend stocks on our list.

The number of hedge funds tracked by Insider Monkey owning stakes in International Flavors & Fragrances Inc. (NYSE:IFF) grew to 46 in Q2 2023, from 41 in the previous quarter. The collective value of these stakes is over $2.28 billion.

9. UGI Corporation (NYSE:UGI)

Year-to-Date Share Price Drop as of September 13: 37.3%

UGI Corporation (NYSE:UGI) is a natural gas distribution company that also offers other related services to its consumers. The stock is down by 37.3% since the start of 2023 due to its uncertain financial position. In the most recent quarter, the company’s revenue fell by 18% on a year-over-year basis and also missed analysts’ estimates by $150 million. It is among the worst-performing dividend stocks on our list.

According to Insider Monkey’s database of Q2 2023, 22 hedge funds owned stakes in UGI Corporation (NYSE:UGI), up from 20 in the previous quarter. The collective value of these stakes is over $180.5 million.

First Pacific Advisors mentioned UGI Corporation (NYSE:UGI) in its Q2 2023 investor letter. Here is what the firm has to say:

“UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. This is our kind of company – despite the disparate parts, UGI grows earnings at a relatively steady high single digit rate over the long term while distributing excess cash through dividends.25 Shares are down due to a collection of short-term issues – driver shortages at the US propane business, losses from fixed priced contracts at the European energy marketing business, lower propane volumes in Europe and warmer weather. We believe the company is attractive at less than 10x earnings and we have been incrementally adding.”

8. The AES Corporation (NYSE:AES)

Year-to-Date Share Price Drop as of September 13: 38.6%

The AES Corporation (NYSE:AES) is a global energy company that operates in the power generation and utility sector. The company’s balance sheet and increasing debt have been gaining a lot of attention from analysts this year. As of June 30, it had a net debt of over $24.5 billion, compared to shareholders’ equity of $6.04 billion. The stock has generated negative returns of 38.6% since the beginning of 2023, which makes it one of the worst performing dividend stocks on our list.

At the end of Q2 2023, 36 hedge funds in Insider Monkey’s database owned investments in The AES Corporation (NYSE:AES), down from 44 in the previous quarter. The consolidated value of stakes owned by these hedge funds is over $946.7 million.

7. Macy’s, Inc. (NYSE:M)

Year-to-Date Share Price Drop as of September 13: 42.5%

Macy’s, Inc. (NYSE:M) is next on our list of the worst performing dividend stocks on our list. The American department store chain has been experiencing retail weaknesses since the start of the year and it also slashed its fiscal year guidance after its Q1 report. The stock has delivered a negative return of 42.5% in 2023 so far.

As of the close of Q2 2023, 33 hedge funds tracked by Insider Monkey reported having stakes in Macy’s, Inc. (NYSE:M), growing from 28 in the previous quarter. The consolidated value of these stakes is over $675 million.

6. Medical Properties Trust, Inc. (NYSE:MPW)

Year-to-Date Share Price Drop as of September 13: 43.02%

Medical Properties Trust, Inc. (NYSE:MPW) is an American real estate investment trust company that specializes in healthcare-related properties. The significant drop in the company’s share price happened because Steward Health Care System ended its leases for five Utah hospitals in May and then leased them to CommonSpirit. Additionally, there was a $95 million rent write-off, which also contributed to the decline. The stock is down 43.02% year-to-date, which makes it one of the worst-performing dividend stocks on our list.

The Coca-Cola Company (NYSE:KO), Colgate-Palmolive Company (NYSE:CL), and AbbVie Inc. (NYSE:ABBV) have also reported negative returns this year so far.

As of the end of the June quarter of 2023, 20 hedge funds in Insider Monkey’s database held stakes in Medical Properties Trust, Inc. (NYSE:MPW), with a total value of roughly $170 million.

Click to continue reading and see 5 Worst Performing Dividend Stocks YTD.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up