In this article, we will take a look at dividend stocks targeted by short sellers.
Short sellers — investors who profit from falling stock prices —are seeing a surge in success in 2025. They gained $159 billion in paper profits over just six trading sessions as escalating trade tensions triggered a drop of more than 10% in the US stock market. The sharp market decline, the steepest since 2022, followed President Donald Trump’s announcement of broad global tariffs. According to S3 Partners LLC, the most lucrative short position during this period was against the SPY ETF, which tracks the S&P Index. Traders betting against this fund have racked up over $6.1 billion in paper gains so far this month, based on an April 8 report from S3.
Short sellers could profit from the sharp intraday market swings that wiped out trillions in value, though their actual gains will depend on when they close their positions. S3 data showed that another $46 billion in new short bets were added in April, raising the risk that these bearish positions could intensify the market’s next major move, particularly if the current downturn reverses and pushes major indexes higher. Ihor Dusaniwsky, managing director of predictive analytics at S3, made the following comment:
“Overall, the short side was an extraordinarily profitable trade up and down the market during this correction. 81% of every short trade was profitable and 97% of every dollar shorted was a profitable trade.”
Another report from S&P Dow Jones Indices noted that the average short interest in US stocks rose to 87 basis points over the past month. The biggest jumps were observed in the Automobiles sector, which climbed by 11 basis points, followed by a 10 basis-point increase in the Commercial and Professional Services sector, and a 9 basis-point rise in the Food and Beverage sector.
Although dividend-paying stocks are generally considered more stable than growth stocks, they have still been subject to short selling throughout history. In their 1998 study Who Trades Around the Ex-Dividend Day?, Jennifer Lynch Koski and John T. Scruggs found unusual trading patterns leading up to the ex-dividend date. They suggested that security dealers might short a stock while it still includes the dividend and then repurchase it after the ex-dividend date if they expect the stock’s price drop to be larger than the dividend amount.
Similarly, in their research paper Tax-Induced Trading Around Ex-Dividend Days, Josef Lakonishok and Theo Vermaelen observed unusual levels of short selling on and shortly after the ex-dividend date. They found that this activity tends to be more pronounced in stocks offering higher dividend yields. Their findings suggest that short sellers aim to minimize the typical price drop that often follows the ex-dividend date. Given this, we will take a look at some dividend stocks that are targeted by short sellers in the current market environment.
Image by Steve Buissinne from Pixabay
Our Methodology
For this article, we screened for dividend stocks with more than 3% of their float sold short, using data from Yahoo Finance recorded on April 15. From that group, we picked stocks with dividend yields above 3%, as of April 28. Companies offering high dividend yields are often more likely to attract the attention of short sellers. The stocks are ranked in ascending order of their short % of float.
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25. VICI Properties Inc. (NYSE:VICI)
Short % of Float as of April 15: 3.03%
Dividend Yield as of April 28: 5.40%
VICI Properties Inc. (NYSE:VICI) is an American real estate investment trust company that invests in casinos and entertainment properties. The stock is often targeted by short sellers, largely because of its high dividend yield, significant dependence on the gaming sector, and sensitivity to changes in interest rates. Although its strong ties to the gaming industry could seem like a risk, casinos have generally proven to be resilient even in tough economic times. The company further strengthens its position by locking in tenants with long-term leases, while the strict regulations governing the gaming industry make it difficult for tenants to move elsewhere, providing additional stability.
This strategy has allowed VICI Properties Inc. (NYSE:VICI) to achieve full occupancy since its 2018 IPO, even through challenges such as the COVID-19 pandemic, which heavily affected the travel, hospitality, and casino industries. In addition, many of VICI’s leases are tied to the consumer price index (CPI), enabling rental increases that help offset inflation. Since the start of 2025, the stock has surged by over 11%.
In the latest quarter, VICI Properties Inc. (NYSE:VICI) showcased a strong financial position, finishing fiscal 2024 with $524.6 million in cash. The company also returned $456.7 million to shareholders through dividends during the fourth quarter. Since establishing its dividend policy in 2018, VICI has consistently raised its dividend each year. The company offers a quarterly dividend of $$0.4325 per share and has a dividend yield of 5.4%, as of April 28.
24. Ally Financial Inc. (NYSE:ALLY)
Short % of Float as of April 15: 4.16%
Dividend Yield as of April 28: 3.62%
Ally Financial Inc. (NYSE:ALLY) is a Michigan-based bank holding company that primarily focuses on auto lending. The company has clearly established strong expertise in auto lending. However, this also creates concentration risk, since retail auto loans make up more than half of its total loan portfolio. Given that new car sales tend to be highly cyclical, any negative factors, such as an economic slowdown or prolonged inflation, could pose significant challenges for the company. The stock is down by nearly 7% since the start of 2025. It is among the dividend stocks targeted by short sellers.
In the first quarter of 2025, Ally Financial Inc. (NYSE:ALLY) reported revenue of $1.54 billion, down 22.4% from the same period last year. The revenue also missed analysts’ estimates by $429.4 million. The company reported $10.2 billion in consumer auto origination volume, sourced from a record 3.8 million auto loan applications. It achieved a retail auto originated yield of 9.80%, with 44% of the volume coming from borrowers in the highest credit quality tier. Additionally, Ally marked its 64th consecutive quarter of retail deposit customer growth, adding 58,000 new customers in the first quarter and bringing its total retail deposit base to 3.3 million.
Ally Financial Inc. (NYSE:ALLY) ended the quarter with $9.5 billion available in cash and cash equivalents. The company is a strong dividend payer, having maintained its payouts consistently since 2016. Currently, it offers a quarterly dividend of $0.30 per share and has a dividend yield of 3.62%, as of April 28.
23. Ford Motor Company (NYSE:F)
Short % of Float as of April 15: 4.59%
Dividend Yield as of April 28: 5.99%
Ford Motor Company (NYSE:F) is an American multinational automobile manufacturer, headquartered in Michigan. The company sells commercial vehicles and automobiles under both its Ford and luxury Lincoln brands. According to analysts, the global automotive industry has reached a point of maturity, leaving little room for significant growth. Ford, in particular, isn’t expected to see a major increase in its revenue. In its key market, the United States, vehicle sales totaled 18.2 million in March on a seasonally adjusted annual rate — a figure that has barely changed over the past couple of decades. This stagnant trend doesn’t offer much for investors to get excited about.
Another challenge is the intense competition. Consumers today have an abundance of options when it comes to choosing where to spend their money on a new vehicle. The stock is down by over 21% in the past 12 months. However, its quarterly earnings came in strong. In the fourth quarter of 2024, Ford Motor Company (NYSE:F) reported revenue of $48.2 billion, representing a 5% increase from the same period a year earlier. The company continued to generate strong cash flow throughout the year, ending with $15.4 billion in operating cash flow and $6.7 billion in free cash flow.
Looking ahead to 2025, Ford Motor Company (NYSE:F) expects its adjusted EBIT to land between $7.0 billion and $8.5 billion, with adjusted free cash flow forecasted between $3.5 billion and $4.5 billion. Capital spending for the year is projected to range from $8 billion to $9 billion. Currently, it pays a quarterly dividend of $0.15 per share and has a dividend yield of 5.99%, as of April 28.
22. Evergy, Inc. (NASDAQ:EVRG)
Short % of Float as of April 15: 4.90%
Dividend Yield as of April 28: 3.88%
Evergy, Inc. (NASDAQ:EVRG) ranks 22nd on our list of dividend stocks targeted by short sellers. The American electric services company provides electricity generation, transmission, and distribution services to residential, commercial, industrial, and wholesale customers.
In its most recent earnings update, Evergy, Inc. (NASDAQ:EVRG) indicated that, despite weather-related challenges, it achieved adjusted earnings per share of $3.81, falling within its projected range of $3.73 to $3.93. It was further noted that the company is in advanced talks with two major data center clients regarding its project pipeline of over 10 gigawatts, underscoring both the strength of the region and the promising opportunities on the horizon. The stock is also generating solid returns this year, surging by nearly 12% since the start of 2025.
In the fourth quarter of 2024, Evergy, Inc. (NASDAQ:EVRG) posted revenue of $1.26 billion, marking a 5.85% increase compared to the same quarter a year earlier. The company also exceeded analysts’ expectations by $14.6 million. However, its EPS of $0.35 missed the analysts’ consensus by $0.02. Known for its consistent dividend growth, Evergy has raised its payouts for 19 consecutive years. It offers a quarterly dividend of $0.6675 per share, with a dividend yield of 3.88%, as of April 28.
21. The J. M. Smucker Company (NYSE:SJM)
Short % of Float as of April 15: 5.76%
Dividend Yield as of April 28: 3.80%
The J. M. Smucker Company (NYSE:SJM) is an Ohio-based food company that manufactures a wide range of food and beverage products. In the latest quarter, the company highlighted that rising commodity prices, particularly for green coffee, made its procurement strategies crucial for protecting margins. It was also noted that one-time events, such as trademark impairment charges and supply chain disruptions, weighed on operating performance and contributed to the mixed results.
In fiscal Q3 2025, The J. M. Smucker Company (NYSE:SJM) reported revenue of $2.2 billion, marking a 2% decline compared to the previous year. The company posted a net loss of $6.22 per diluted share, largely attributed to noncash impairment charges related to its Sweet Baked Snacks segment. On an adjusted basis, however, earnings per share rose by 5% to $2.61. Gross profit improved by $55 million, or 7%, driven by stronger pricing, lower costs, and contributions from the Hostess Brands acquisition. Weaker sales volumes and the impact of recent divestitures partly offset these benefits.
The J. M. Smucker Company (NYSE:SJM)’s free cash flow for the quarter dropped sharply to $151.3 million, reflecting a 39.3% decline from the same period last year, largely due to shifts in the timing of tax payments and higher working capital requirements. Operating cash flow also saw a notable decrease, underscoring the importance of careful cash management from now on. However, its dividend history is encouraging for income investors as SJM maintains a 23-year track record of dividend growth. The company’s quarterly dividend comes in at $1.08 per share and has a dividend yield of 3.80%, as of April 28.
20. General Mills, Inc. (NYSE:GIS)
Short % of Float as of April 15: 6.01%
Dividend Yield as of April 28: 4.31%
General Mills, Inc. (NYSE:GIS) is an American multinational manufacturer of branded processed consumer foods sold through retail stores. The stock is down by over 12% since the start of 2025 as rising input costs remained a persistent challenge for the company. In addition, external pressures, including inventory reductions by retailers in key segments, significantly impacted its performance in its latest quarter. Management recognized the ongoing supply chain issues and expressed a commitment to addressing these challenges to help stabilize future sales. Efforts to cut costs and pursue strategic initiatives were highlighted as part of a broader plan to strengthen financial stability in the coming quarters.
In the third quarter of fiscal 2025, General Mills, Inc. (NYSE:GIS) reported mixed results, posting revenue of $4.8 billion, a 5% year-over-year decline. Organic net sales also fell 5%, with around four percentage points of the decline tied to retailer inventory reductions and the anticipated reversal of favorable timing factors from the previous quarter. Despite the difficult environment, the company managed to expand its market share in the Pet, Foodservice, and International segments. Pillsbury refrigerated dough and Totino’s hot snacks categories also delivered stronger performances, helped by increased investments made earlier in the fiscal year.
The company also managed to maintain its cash position. Over the first nine months of fiscal 2025, General Mills, Inc. (NYSE:GIS) generated $2.3 billion in operating cash flow and spent $405 million on capital expenditures. During this period, the company returned $1 billion to shareholders through dividends. Currently, it offers a quarterly dividend of $0.60 per share and has a dividend yield of 4.31%, as of April 28. The company has a solid dividend history of paying regular dividends for 126 years.
19. The Hershey Company (NYSE:HSY)
Short % of Float as of April 15: 6.18%
Dividend Yield as of April 28: 3.38%
The Hershey Company (NYSE:HSY) is a multinational confectionery company that is known for its chocolates, snacks, and pantry items. The company is currently navigating some challenges. Cocoa prices have surged so dramatically that Hershey has little room to pass the added costs onto consumers. As a result, it will likely need to shoulder the burden itself for the time being, which is expected to weigh on its 2025 earnings. The stock is down by over 3% since the start of 2025.
Despite these pressures, The Hershey Company (NYSE:HSY) remains focused on growing its revenue and expanding its market share. It continues to push forward with its transformation plans and productivity initiatives, aiming to set itself up for long-term success ahead of industry peers. In the fourth quarter of 2024, the company posted revenue of $2.9 billion, marking an increase of nearly 9% compared to the same period a year earlier. The figure also came in $45 million higher than what analysts had forecasted.
On an organic basis and at constant currency, net sales rose by 9.0%. Acquisitions provided a small lift of 0.2 percentage points, while currency movements dragged sales down by 0.5 percentage points. Reported net income for the quarter stood at $796.6 million, or $3.92 per diluted share, representing a substantial 130.6% jump.
By the end of fiscal 2024, The Hershey Company (NYSE:HSY) maintained a strong cash position, with roughly $731 million in cash and cash equivalents, up significantly from $402 million the previous year. The company’s quarterly dividend comes in at $1.37 per share and has a dividend yield of 3.38%. HSY is grabbing investors’ attention with 15 consecutive years of dividend growth under its belt.
18. Nordic American Tankers Limited (NYSE:NAT)
Short % of Float as of April 15: 6.92%
Dividend Yield as of April 28: 13.39%
Nordic American Tankers Limited (NYSE:NAT) is an international tanker company, headquartered in Bermuda. The company owns, operates, and charters Suezmax tankers. Over the past 12 months, the share price has fallen by over 35%, weighed down by softer demand and the return of charter rates to more typical levels. In the fourth quarter, the company reported earnings per share of just $0.01, and revenue fell short of expectations by $5 million. This performance signals the close of an unusually strong run for tanker operators, as spot Time Charter Equivalent (TCE) rates have dropped significantly from the peaks seen last year, when geopolitical tensions had temporarily boosted demand.
On top of that, concerns are growing over Nordic American Tankers Limited (NYSE:NAT)’s long-term capital strategy, given its declining book value and the slow pace of its fleet modernization. However, the company’s dividend history is encouraging for investors. It has paid regular dividends to shareholders for 110 consecutive years. Currently, its quarterly dividend comes in at $0.06 per share and has an attractive dividend yield of 13.39%, as of April 28. It is among the dividend stocks targeted by short sellers.
At the end of Q4 2024, 9 hedge funds tracked by Insider Monkey held stakes in Nordic American Tankers Limited (NYSE:NAT), up from 8 in the previous quarter. The consolidated value of these stakes is over $22.8 million. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q4.
17. Prospect Capital Corporation (NASDAQ:PSEC)
Short % of Float as of April 15: 7.05%
Dividend Yield as of April 28: 14.75%
Prospect Capital Corporation (NASDAQ:PSEC) is a New York-based business development company that invests in debt and equity in US middle-market businesses across various industries, aiming to provide consistent and attractive returns to its shareholders. The company’s high dividend yield, coupled with last year’s dividend cut, has made it an appealing target for short sellers. While it continues to pay dividends monthly, the reduction in dividends didn’t sit well with income investors. Since the start of 2025, the stock has declined by over 14%.
In the fourth quarter of 2024, Prospect Capital Corporation (NASDAQ:PSEC) reported revenue of $185.4 million, down by over 12% from the same period last year. The revenue also missed analysts’ estimates by $4.2 million. Payment-in-kind income dropped to $20 million, representing a 39% decline from the previous quarter and nearly a 50% decrease compared to June 2024. The company also carries long-term debt obligations that are scheduled to be repaid over the next 27 years. Additionally, PSEC has committed to $62 million in future investments, though it retains discretion over $29 million of that amount.
However, Prospect Capital Corporation (NASDAQ:PSEC)’s EPS of $0.20 beat the consensus by $0.06. Interest income made up 91% of the company’s total investment income, highlighting the strength of its recurring revenue stream. Moreover, despite announcing a dividend cut last year, the company has maintained regular payouts for 94 months. Currently, it pays a monthly dividend of $0.045 per share and has a dividend yield of 14.75%, as of April 28.
16. Stanley Black & Decker, Inc. (NYSE:SWK)
Short % of Float as of April 15: 7.28%
Dividend Yield as of April 28: 5.34%
Stanley Black & Decker, Inc. (NYSE:SWK) is a Connecticut-based manufacturing company that specializes in industrial tools, household hardware, and security products. Earlier this year, CNBC pointed out that SWK’s turnaround efforts appeared increasingly uncertain as the bond market pushed back against the Federal Reserve’s interest rate cuts. Beyond its general vulnerability to an economic slowdown — where discretionary spending on DIY tools and industrial fasteners typically declines — the company also faces additional risk due to its reliance on sourcing products from countries such as China. The stock is down by over 23% since the start of 2025 and is one of the dividend stocks targeted by short sellers.
In the fourth quarter of 2024, Stanley Black & Decker, Inc. (NYSE:SWK) posted revenue of $3.7 billion, holding steady compared to the same period a year earlier. Despite a mixed macroeconomic backdrop, the company remains encouraged by the growth and market share gains of its DEWALT brand and certain areas within its engineered fastening segment. As it moves forward, the company highlights its progress in achieving key financial goals, including an adjusted gross margin above 31% for the quarter and solid cash flow performance.
During Q4 2024, Stanley Black & Decker, Inc. (NYSE:SWK) reported operating cash flow of $679 million and free cash flow of $565 million. This strong cash generation enabled Stanley Black & Decker to reduce its debt by $1.1 billion by the end of the year. The company has been paying regular dividends to shareholders for the past 148 years while maintaining a dividend growth streak of 58 years. It pays a quarterly dividend of $0.82 per share and has a dividend yield of 5.34%, as of April 28.
15. UGI Corporation (NYSE:UGI)
Short % of Float as of April 15: 7.55%
Dividend Yield as of April 28: 4.61%
UGI Corporation (NYSE:UGI) ranks 15th on our list of the dividend stocks targeted by short sellers. The diversified energy company with operations spanning natural gas utilities, midstream and marketing, international LPG, and AmeriGas has seen its stock lag due to weakness in its propane business. AmeriGas, which UGI acquired in 2019 for $4.6 billion, was initially expected to boost earnings but has instead weighed heavily on the company’s financial performance.
Since the acquisition, AmeriGas’ EBITDA has dropped from $584 million in 2019 to $320 million in 2024, with margins shrinking from 21.8% to 14.1%. The division has also seen a 30% decline in retail gallons sold, largely blamed on operational issues, poor customer service, and unusually warm weather. These challenges have forced UGI Corporation (NYSE:UGI) to record $850 million in goodwill impairments over the past two years, wiping out nearly half of the goodwill originally attributed to the acquisition. The stock has rebounded and has delivered over 15% return since the start of 2025.
In fiscal Q1 2025, UGI Corporation (NYSE:UGI) reported revenue of $2.03 billion, down 4.29% from the same period last year. The revenue also missed analysts’ estimates by $617 million. However, its cash position was strong as the company had $1.5 billion in available liquidity at the end of December 2024. It has been paying regular dividends to shareholders for the past 140 years, with a quarterly dividend now standing at $0.375 per share. As of April 28, the stock has a dividend yield of 4.61%.
14. The Scotts Miracle-Gro Company (NYSE:SMG)
Short % of Float as of April 15: 7.64%
Dividend Yield as of April 28: 4.91%
The Scotts Miracle-Gro Company (NYSE:SMG) is an Ohio-based company that sells and manufactures consumer lawn, garden, and pest control products, as well as soilless indoor gardening equipment. In a recent conversation with CNBC’s Jim Cramer, Scotts Miracle-Gro CEO Jim Hagedorn discussed the company’s efforts to exit its cannabis business, indicating that the matter was now largely settled. He noted that the company had lost around $2 billion on the venture and explained that the business would be placed into a separate entity, in which Scotts Miracle-Gro would retain an equity stake, leaving the future of the investment to unfold as circumstances allow.
Earlier in April, The Scotts Miracle-Gro Company (NYSE:SMG) had announced plans to transfer its cannabis-related investments to an independent strategic partner. In the accompanying press release, management acknowledged that the broader cannabis sector had been weighed down by slow progress on federal legalization. Nevertheless, it stated that it would keep the option open to reacquire the business or its assets if future legislative changes created a more favorable environment. The stock is down by over 18% since the start of 2025.
The Scotts Miracle-Gro Company (NYSE:SMG) posted stronger-than-expected results for the first quarter of 2025, reporting an EPS of -$0.89, ahead of analysts’ expectations of -$1.23. Revenue for the quarter came in at $416.8 million, reflecting a 1.56% year-over-year increase and surpassing estimates by $24.76 million. SMG shared that it is investing an additional $40 million into the business to broaden its customer base and grow its market share, with most of the funds directed toward advertising and brand innovation.
The Scotts Miracle-Gro Company (NYSE:SMG) has also been implementing a multi-year cost reduction and business optimization plan, which has delivered $400 million in annual savings. In addition, SMG has made progress in strengthening its balance sheet, with total debt at the end of Q1 2025 down by $337 million compared to the same period last year. Currently, it pays a quarterly dividend of $0.66 per share and has a dividend yield of 4.91%, as recorded on April 28. The company has been making regular dividend payments for the past 21 years.
13. Macy’s, Inc. (NYSE:M)
Short % of Float as of April 15: 7.78%
Dividend Yield as of April 28: 6.35%
Macy’s, Inc. (NYSE:M) is an American holding company of department stores, headquartered in New York. In March, the company issued an annual sales and profit outlook that fell short of Wall Street’s expectations, reflecting a broader pattern among US retailers struggling with softer consumer spending and the added strain of new trade restrictions. Macy’s, which sources a large share of its private-label products from China, is also likely to face additional challenges as the newly announced tariffs from President Donald Trump could further squeeze already stretched American household budgets. M is down by over 30% since the start of 2025 and is among the dividend stocks targeted by short sellers.
In the fourth quarter of 2024, Macy’s, Inc. (NYSE:M) reported revenue of $7.77 billion, a 4.3% decline compared to the same period the previous year. Despite the drop, the figure still exceeded analysts’ projections by $12.5 million. As the first year of its Bold New Chapter strategy wrapped up, the company pointed to investments in customer experience as a key driver behind its strongest comparable sales performance in nearly three years. The First 50 locations achieved sales growth for four straight quarters, while its luxury banners, Bloomingdale’s and Bluemercury, delivered even faster annual sales growth.
Macy’s, Inc. (NYSE:M) also reported a healthy cash position, appealing to income-focused investors. The company closed the year with $1.3 billion in cash, while its operating cash flow for the year also totaled $1.3 billion and free cash flow reached $679 million. In February, Macy’s raised its quarterly dividend by 5% to $0.1824 per share, marking its fourth consecutive year of dividend growth. The stock supports a dividend yield of 6.35%, as of April 28.
12. Flowers Foods, Inc. (NYSE:FLO)
Short % of Float as of April 15: 8.04%
Dividend Yield as of April 28: 5.43%
Flowers Foods, Inc. (NYSE:FLO) is a Georgia-based company that specializes in the production and marketing of bakery products. In its earnings report, the company noted that first-half results are expected to benefit from the continued momentum of new business wins, cost-saving efforts, pricing initiatives, and easing commodity costs. However, the outlook for the second half of the year factors in the fading of those earlier advantages, renewed pressure from commodity costs, and ongoing challenges within its product categories. Management also expressed enthusiasm about the pending acquisition of Simple Mills, which is anticipated to boost adjusted EBITDA in 2025 but temporarily weigh on adjusted EPS.
Flowers Foods, Inc. (NYSE:FLO) is down by over 14% in 2025 so far and is one of the dividend stocks targeted by short sellers. In the fourth quarter of 2024, the company posted revenue of $1.11 billion, which showed a 1.6% decline from the same period last year. The revenue also missed the analysts’ estimates by $19.7 million. Its net income of $43.1 million grew by 20.9% on a YoY basis and represented nearly 4% of sales. Adjusted EBITDA rose by 6.3% to reach $102.4 million, accounting for 9.2% of net sales, which marked a 70-basis point improvement.
Flowers Foods, Inc. (NYSE:FLO)’s cash position came in strong. In FY24, the company reported an operating cash flow of $412.7 million, an increase of $63.3 million from the prior-year period. It also returned $203 million to shareholders through dividends in FY24. The company’s quarterly dividend comes in at $0.24 per share and has a dividend yield of 5.43%, as of April 28. In 2024, FLO achieved its 22nd consecutive year of dividend growth.
11. The Western Union Company (NYSE:WU)
Short % of Float as of April 15: 10.71%
Dividend Yield as of April 28: 9.24%
The Western Union Company (NYSE:WU) ranks eleventh on our list of the dividend stocks targeted by short sellers. The American multinational financial services company offers online payment services in over 200 countries and territories. The share price has struggled over the past five years and is now trading at its lowest point in almost two decades, largely due to the company’s mediocre performance in recent years. The stock is down by nearly 25% since the start of 2025.
The Western Union Company (NYSE:WU)’s recent earnings could impress investors and analysts. Goldman Sachs reduced the firm’s price target on the stock to $10 and maintained a Sell rating on the stock. The analysts believe the overall trends are softer than expected, highlighting ongoing revenue pressures caused by widening spreads and the global move toward digital remittance services. They also noted that Western Union remains exposed to risks tied to shifts in immigration policies across different countries.
In the first quarter of 2025, The Western Union Company (NYSE:WU) reported revenue of $983.6 million, down 6.24% from the same period last year. The revenue missed the analysts’ consensus by $7.44 million. The decline in revenue was mainly attributed to a reduced contribution from Iraq compared to the same period last year. Adjusted EPS came in at $0.41, down from $0.45 a year earlier, primarily due to the lower contribution from Iraq.
That said, The Western Union Company (NYSE:WU)’s cash position provided a sigh of relief to investors. In the most recent quarter, the company generated $148.2 million in operating cash flow, up from $94 million in the prior-year period. At the end of the quarter, it had $1.3 billion available in cash and cash equivalents. Due to this cash position, the company managed to maintain its dividend payments for 20 consecutive years. It offers a quarterly dividend of $0.235 per share and has a dividend yield of 9.25%, as of April 28.
10. Ethan Allen Interiors Inc. (NYSE:ETD)
Short % of Float as of April 15: 11.65%
Dividend Yield as of April 28: 5.47%
Ethan Allen Interiors Inc. (NYSE:ETD) is an American company that manufactures and markets home furnishings. The company reported mixed earnings in fiscal Q2 2025. Its revenue of $157.2 million not only declined by 6% on a YoY basis but also missed analysts’ estimates by $3.34 million. The company’s EPS came in at $0.59, also missing consensus by $0.02.
However, Ethan Allen Interiors Inc. (NYSE:ETD), in its earnings call, stated that it is well-positioned as a vertically integrated business, operating 172 retail design centers across North America, along with additional locations internationally. Management highlighted that the ability to manufacture around 75% of its furniture in its own North American facilities provides a significant competitive advantage.
Moreover, Ethan Allen Interiors Inc. (NYSE:ETD) also reported strong cash generation. The company’s operating cash flow came in at $11.6 million and had $184.2 million in total cash and investments with no outstanding debt. It also returned $10 million to shareholders through dividends during the quarter, up 8.3% from the same period last year. It offers a quarterly dividend of $0.39 per share and has a dividend yield of 5.47%, as of April 28. It has a history of paying special dividends to shareholders.
9. SL Green Realty Corp. (NYSE:SLG)
Short % of Float as of April 15: 11.81%
Dividend Yield as of April 28: 5.73%
SL Green Realty Corp. (NYSE:SLG) is an American real estate investment trust company and is the largest office landlord in Manhattan. As of March 31, the company had ownership stakes in 55 properties covering a total of 30.8 million square feet. This portfolio included 27.2 million square feet of Manhattan real estate and 2.8 million square feet tied to debt and preferred equity investments.
SL Green Realty Corp. (NYSE:SLG) faced challenges in recent years as the pandemic and shifting trends in work habits continued to pressure the office REIT sector. It reduced its monthly dividend by 13% at the start of 2023, followed by another cut of nearly 8% just before 2024 began. However, in December 2024, it announced a 3% dividend increase — a modest improvement, but a positive sign nonetheless. Although the office market remains somewhat uncertain, it appears that the most difficult period for SL Green may be behind it.
In the first quarter of 2025, SL Green Realty Corp. (NYSE:SLG) reported revenue of $163 million, which showed a 15.2% growth from the same period last year. The revenue surpassed analysts’ estimates by $5.3 million. The company’s same-store cash net operating income — including SL Green’s share from unconsolidated joint ventures — rose by 2.4% year over year, excluding income from lease terminations. As of March 31, office occupancy in Manhattan properties stood at 91.8%, including signed leases that had not yet begun, aligning with the company’s projections.
SL Green Realty Corp. (NYSE:SLG) offers a monthly dividend of $0.2575 per share and has a dividend yield of 5.73%, as of April 28.
8. Franklin Resources, Inc. (NYSE:BEN)
Short % of Float as of April 15: 12.45%
Dividend Yield as of April 28: 6.85%
Franklin Resources, Inc. (NYSE:BEN) is an American multinational investment management holding company, headquartered in California. As of March 31, the company reported preliminary assets under management of $1.53 trillion, marking a 2.4% decline from the prior month. The drop was driven by market-related challenges and an estimated $4 billion in long-term net outflows, with $7 billion of that coming from Western Asset Management.
Nonetheless, Franklin Resources, Inc. (NYSE:BEN) experienced a 34% year-over-year increase in long-term inflows during the first quarter of fiscal 2025, excluding reinvested distributions, and reported $17 billion in net inflows across several investment strategies. Even though total long-term outflows—excluding Western Asset—amounted to $50 billion, Franklin still achieved $18 billion in net inflows when considering all asset classes.
Franklin Resources, Inc. (NYSE:BEN) also maintains a strong dividend track record, having raised its payout for 49 consecutive years. Currently, it offers a quarterly dividend of $0.32 per share and has a dividend yield of 6.85%, as of April 28.
7. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Short % of Float as of April 15: 13.59%
Dividend Yield as of April 28: 5.00%
Sirius XM Holdings Inc. (NASDAQ:SIRI) ranks seventh on our list of the dividend stocks targeted by short sellers. The American multinational broadcasting corporation is a leading provider of satellite radio and online audio entertainment services. Satellite radio initially transformed the driving experience by offering nationwide, ad-free content and exclusive deals with automakers, making it a valuable add-on for car sales. However, rising royalty costs and the rapid rise of smartphone streaming apps began to undermine its growth. These pressures, combined with the need for scale, led regulators to approve a rare monopoly when Sirius and XM merged during the financial crisis. Though it took time and financial support to finalize, the merger eventually produced a profitable, though slower-growing, business.
In the past 12 months, Sirius XM Holdings Inc. (NASDAQ:SIRI) has declined by over 31%. In the fourth quarter of 2024, the company reported revenue of $2.2 billion, down 3% from the same period last year. However, the revenue surpassed analysts’ estimates by $17.98 million. For the year, the number of self-pay subscribers dropped by 296,000.
In 2024, Sirius XM Holdings Inc. (NASDAQ:SIRI) produced $1.015 billion in free cash flow, which was about $167 million lower than the amount reported the previous year. Over time, the company has relied on its strong cash flow to buy back shares and increase returns to shareholders, while taking a more cautious approach toward adding new debt. It has raised its payouts for seven consecutive years and currently offers a quarterly dividend of $0.27 per share. As of April 28, the stock has a dividend yield of 5%.
6. Amcor plc (NYSE:AMCR)
Short % of Float as of April 15: 14.35%
Dividend Yield as of April 28: 5.33%
Amcor plc (NYSE:AMCR) is an Australian packaging company. In fiscal Q2 2025, the company posted revenue of $3.24 billion, a slight decline of 0.3% compared to the previous year. However, shipment volumes grew by 2.3% year-over-year, building on a 1.6% rise in the first quarter and marking the fourth consecutive quarter of volume gains. Adjusted EBIT, on a comparable constant currency basis, rose about 5% to $363 million.
Looking ahead, Amcor plc (NYSE:AMCR) reaffirmed its full-year outlook, expecting adjusted EBIT growth of 3% to 8% in constant currency terms. It also plans to maintain its leverage ratio at or below 3x by the end of fiscal 2025 and targets adjusted free cash flow between $900 million and $1 billion. It is among the dividend stocks targeted by short sellers.
For the first half of fiscal 2025, operating cash flow reached $228 million, improving from $159 million a year earlier. Amcor plc (NYSE:AMCR) continues to reward its investors with a quarterly dividend of $0.1275 per share and has now increased its payouts for 41 consecutive years. It currently pays a quarterly dividend of $0.1275 per share and has a dividend yield of 5.3%, as of April 28.
4. Agree Realty Corporation (NYSE:ADC)
Short % of Float as of April 15: 14.71%
Dividend Yield as of April 28: 4.04%
Agree Realty Corporation (NYSE:ADC) is a real estate investment trust company, headquartered in Michigan, US. The company has built a strong position in the retail sector, with major tenants like Walmart, Tractor Supply, Dollar General, Best Buy, TJX, Dollar Tree, Lowe’s, and Kroger, which together account for about a third of its annual rental income. The rest is generated from a broad range of other well-established businesses.
While Agree Realty Corporation (NYSE:ADC) fundamentals remain solid, it is still smaller and less diversified compared to many of its peers. Its dividend yield also trails others in the industry. Although the company’s last dividend cut occurred back in 2011, it remains a factor when comparing it to competitors.
Agree Realty Corporation (NYSE:ADC) reported strong earnings in the first quarter of 2025. The company posted revenue of $169 million, which showed a significant growth of over 13% from the same period last year. The revenue also beat analysts’ estimates by $2.6 million. The company allocated around $377 million toward the acquisition of 69 retail net lease properties. On April 10, it declared a 1.2% hike in its monthly dividend to $0.256 per share. The dividend accounts for roughly 73% of Core FFO per share and about 72% of AFFO per share. As of April 28, the stock has a dividend yield of 4.04%.
4. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Short % of Float as of April 15: 16.67%
Dividend Yield as of April 28: 4.54%
Skyworks Solutions, Inc. (NASDAQ:SWKS) is a California-based semiconductor company. It is among the dividend stocks that short sellers are targeting, with a short percentage of float of nearly 17%. The company continues to play an important role in the growth of wireless networking as a leading developer, manufacturer, and supplier of analog and mixed-signal semiconductor products across various applications.
In the first quarter of 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) reported revenue of $1.07 billion, down over 11% year-over-year, though it still exceeded analysts’ expectations by $1.76 million. Skyworks secured 5G content for premium Android smartphones from brands like Samsung Galaxy, Xiaomi, and Asus, and contributed to Gemtek’s launch of the first AI router, which includes a voice-enabled, AI-based healthcare feature.
Skyworks Solutions, Inc. (NASDAQ:SWKS) maintained a solid financial position, generating $377 million in operating cash flow and $338 million in free cash flow, representing 35% and 32% of its margins, respectively. The company also offers a quarterly dividend of $0.70 per share, with a 2.9% increase announced in July 2024. This marked the 10th consecutive year of dividend growth. The stock supports a dividend yield of 4.54%, as of April 28.
3. Cal-Maine Foods, Inc. (NASDAQ:CALM)
Short % of Float as of April 15: 17.06%
Dividend Yield as of April 28: 8.11%
Cal-Maine Foods, Inc. (NASDAQ:CALM) is the leading producer and distributor of fresh shell eggs in the US. The company has been under pressure lately as several major shareholders have decided to sell their stakes. On April 16, the company announced that the four daughters of its late founder, Fred R. Adams, Jr., along with his son-in-law, plan to offload nearly 3 million shares. At current market prices, the total value of the shares would be just under $280 million. However, the insiders are offering the shares at a discounted price of $92.75 each. The stock is down by over 9% since the start of 2025.
However, Cal-Maine Foods, Inc. (NASDAQ:CALM) has posted impressive growth, fueled by higher egg prices, strong operational efficiency, and strategic moves like the acquisition of ISE America. In fiscal Q3 2025, revenue more than doubled, jumping 101.6% year-over-year, supported by strong demand and supply shortages linked to avian flu outbreaks, which helped lift gross margins from 31.1% to 50.5%. Backed by a solid balance sheet—with $497.2 million in cash and very little debt—Cal-Maine is well-positioned to expand its cage-free production efforts, keeping pace with regulatory changes and shifting consumer preferences.
During the quarter, Cal-Maine Foods, Inc. (NASDAQ:CALM) also paid $170 million worth of dividends. The company currently offers a quarterly dividend of $1.49 per share and has a dividend yield of 8.11%, as recorded on April 28.
2. Guess?, Inc. (NYSE:GES)
Short % of Float as of April 15: 20.52%
Dividend Yield as of April 28: 10.38%
Guess?, Inc. (NYSE:GES), a California-based clothing company, designs, markets, distributes, and licenses a variety of lifestyle products, including apparel, denim, handbags, watches, eyewear, and footwear. As of February 1, 2025, the company operated 1,070 stores directly across Europe, the Americas, and Asia, with its partners and distributors running an additional 527 stores globally, giving it a presence in around 100 countries. With a short percentage float of 20.5%, GES is among the dividend stocks targeted by short sellers.
In the fourth quarter of fiscal 2025, Guess?, Inc. (NYSE:GES) reported revenue of $932.2 million, marking a 5% increase from the same period a year earlier and surpassing analysts’ expectations by $24.5 million. Growth during the quarter was mainly driven by the acquisition of rag & bone, strong performance in wholesale operations across Europe and the Americas, and higher licensing revenues. Looking ahead, these initiatives are expected to contribute roughly $30 million in operating profit by fiscal 2027.
Guess?, Inc. (NYSE:GES) maintained a stable financial position, closing the year with $187.7 million in cash and cash equivalents and generating $121.6 million in operating cash flow. For fiscal 2026, Guess? anticipates producing $125 million in operating cash flow and $55 million in free cash flow. The company is a strong dividend payer, having maintained its payouts for 18 consecutive years. Currently, it offers a quarterly dividend of $0.30 per share and has a dividend yield of 10.38%, as of April 28.
1. Jack in the Box Inc. (NASDAQ:JACK)
Short % of Float as of April 15: 32.33%
Dividend Yield as of April 28: 6.95%
Jack in the Box Inc. (NASDAQ:JACK) is an American fast-food chain company, headquartered in California. The company reported a 3.7% drop in total revenue for the first quarter of fiscal 2025, bringing in $469.4 million. This decline was mainly attributed to the refranchising of its Del Taco brand. Net income for the quarter stood at $33.7 million. Same-store sales saw a slight overall rise of 0.4%, with franchise locations increasing by 0.5%, while company-owned stores dipped by 0.4%.
Despite the mixed financial results, Jack in the Box Inc. (NASDAQ:JACK) demonstrated a strong cash position, generating more than $105.6 million in operating cash flow—an impressive turnaround from the negative $22,675 recorded during the same period last year. The company has consistently paid dividends since 2014. Its quarterly dividend comes in at $0.44 per share and has a dividend yield of 6.95%, as of April 28.
At the end of Q4 2024, 17 hedge funds tracked by Insider Monkey held stakes in Jack in the Box Inc. (NASDAQ:JACK), up from 16 in the previous quarter. The collective value of these stakes is over $75.3 million. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q4.
Overall, Jack in the Box Inc. (NASDAQ:JACK) ranks first on our list of the dividend stocks targeted by short sellers. While we acknowledge the potential of JACK as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than JACK but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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