In this article, we discuss 5 dividend stocks that are down over 30% YTD. If you want to see more dividend stocks that are down over 30% YTD, the risk/reward, and methodology of this list, go directly to 12 Dividend Stocks That Are Down Over 30% YTD.
5. Domino’s Pizza, Inc. (NYSE:DPZ)
Year to Date Performance as of 12/26: -37.44%
Dividend Yield as of 12/26: 1.25%
Number of Hedge Fund Holders: 52
Domino’s Pizza, Inc. (NYSE:DPZ) shares have retreated 37.44% in 2022 as adjusted EPS for the third quarter of 2022 fell to $2.79 from the prior year period of $3.24. For the three fiscal quarters of 2022, adjusted EPS was $8.11 versus the comparable period of 2021’s $9.36. Although the company is the largest pizza chain in the world with substantial scale, Domino’s Pizza, Inc. (NYSE:DPZ) has faced macroeconomic headwinds such as the strong U.S. dollar which has decreased the company’s international sales in dollar terms.
52 hedge funds in our database owned shares of Domino’s Pizza, Inc. (NYSE:DPZ) at the end of Q3, ranking the stock #5 on our list of 12 Dividend Stocks That Are Down Over 30% YTD.
4. The Estee Lauder Companies Inc. (NYSE:EL)
Year to Date Performance as of 12/26: -34.89%
Dividend Yield as of 12/26: 1.10%
Number of Hedge Fund Holders: 52
Cosmetics conglomerate The Estee Lauder Companies Inc. (NYSE:EL) has been under pressure this year given foreign exchange headwinds and weaker demand. As a result, the company in November cut its FY23 adjusted EPS outlook to $5.25-$5.40 from the previous $7.39-$7.54. The Estee Lauder Companies Inc. (NYSE:EL) also sees net sales retreating between 8% and 6% year over year for the fiscal year.
As a result of the weaker earnings outlook and other factors, The Estee Lauder Companies Inc. (NYSE:EL) has fallen 34.89% in 2022. Considering the company’s annual dividend of $2.64 per share and the expected FY23 adjusted EPS outlook of over $5.25, The Estee Lauder Companies Inc. (NYSE:EL)’s dividend looks secure amid the down year.
3. FedEx Corporation (NYSE:FDX)
Year to Date Performance as of 12/26: -31.98%
Dividend Yield as of 12/26: 2.61%
Number of Hedge Fund Holders: 57
FedEx Corporation (NYSE:FDX) is a blue chip that’s down 31.98% in 2022 given the macro headwinds which have led to a drop in volume which accelerated through Q2. Nevertheless, the company has said the volume decline has begun to moderate at the end of Q3. While the company is cutting costs, there could be more volatility if there is a severe recession next year that might weaken shipment volumes further.
In the long term, however, FedEx Corporation (NYSE:FDX) has many competitive advantages. Its stock has a dividend yield of 2.61% as of 12/26.
2. Prologis, Inc. (NYSE:PLD)
Year to Date Performance as of 12/26: -32.51%
Dividend Yield as of 12/26: 2.78%
Number of Hedge Fund Holders: 59
Prologis, Inc. (NYSE:PLD) is a leading industrial REIT with a dividend yield of 2.78% as of 12/26. Although Prologis, Inc. (NYSE:PLD) has a high portfolio lease rate and relatively attractive cash flow growth potential, the broader REIT sector has declined substantially this year given the rise in Treasury yields. If U.S. government bond yields rise further, there could be more pressure in the next year as well. Shares of Prologis, Inc. (NYSE:PLD) are down 32.51% year to date but could have long term upside if interest rates normalize and the company maintains its market share.
1. NIKE, Inc. (NYSE:NKE)
Year to Date Performance as of 12/26: -30.25%
Dividend Yield as of 12/26: 1.17%
Number of Hedge Fund Holders: 70
Although shares of NIKE, Inc. (NYSE:NKE) have rallied substantially from October, they are still down 30.25% year to date as the market has not liked how demand for the company’s leading apparel has been weaker than expected. As a result of the weaker demand, NIKE, Inc. (NYSE:NKE)’s inventories have been higher than some estimates and its gross margins have come under pressure. In the long term, NIKE, Inc. (NYSE:NKE) has a pretty attractive business given its strong brand, however, and rising incomes in developing countries could lead to demand growing in the next 10 years. Currently, the company has a dividend yield of around 1.17%.
70 hedge funds in our database owned shares at the end of Q3, ranking NIKE, Inc. (NYSE:NKE) #1 on our list of 12 Dividend Stocks That Are Down Over 30% YTD.
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