We recently published a list of These Were Last Week’s 10 Worst Dividend Stocks. In this article, we are going to take a look at where Northrim BanCorp, Inc. (NASDAQ:NRIM) stands against other last week’s worst dividend stocks.
Dividend stocks have historically been the top preference for many investors seeking stable income. However, as the years progress, the markets and the companies go through changes that affect the value of the investments made by the investors. It becomes necessary to review companies’ performance in the market at frequent intervals. In this regard, the list we have put together will show the worst performances of some high dividend-paying companies. The list might help you make informed decisions with your investment.
The second week of February 2025 was not favorable for some dividend stocks. Multiple factors contributed to these stocks’ fall in performance, including sector-wise challenges and broader economic trends. Shifts in monetary policy, like interest changes, could have a notable effect on dividend-paying stocks. The impact would be multifold for companies in specific sectors like utilities or real estate. Macroeconomic conditions like geopolitical tensions or decreasing consumer demand have also imprinted on particular companies.
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Though the dividend stocks may have perceived stability, it is necessary to remember that they are not immune to market volatility. Consistency in the dividend payouts can be viewed as a good sign. However, with declining stock prices, there will be a fall in the dividend benefits. In other words, even if a company maintains its payout, the return on investment for the investor could still become negative. Hence, there arises a need to assess the factors contributing to the stock performance in addition to evaluating a company’s dividend yield.
By understanding the reasons behind the poor performances of the stocks in our list, investors can redefine their investment strategy. Consecutively, the information in this article helps identify the companies that lagged in their performances in the last week and also assists the investors in learning from these instances. A disciplined approach to portfolio management always includes learning from the examples. It ensures that we are better prepared to handle market fluctuations in the future. You can be a seasoned investor or a newcomer to dividend stocks. Understanding the factors driving the performance of the company’s value would be immensely useful to you in achieving long-term financial success.
When going through the list, the investors may consider the fitting of these companies in their broader investment strategy. It is important to remember that the performances we will look at in this article are only one week’s performance and do not reflect the future performance of these stocks. It is up to the investors to decide whether these stocks are worth holding onto despite recent setbacks or if their struggles are signaling deeper issues. The article is only an opportunity to reassess the portfolio to match your financial goals.
Our Methodology
In this article, we focused on identifying dividend stocks that have underperformed during the last week, between 10th February and 14th February 2025. The selection criteria required stocks to have a minimum dividend yield of 2%. It helps in keeping the article relevant for income-focused investors. Additionally, we took into our list, only companies with a market capitalization of at least $300 million. With this, we were able to maintain a focus on widely traded companies. Another criterion is that the stocks must have experienced a decline of at least 3% during the specified period as this will help in ensuring the inclusion of significant underperformers in the market. The stocks are ranked according to their dividend yields.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Northrim BanCorp, Inc. (NASDAQ:NRIM)
Dividend yield: 3.05%
Dividend payout ratio: 37.16%
Ex-Dividend Date: March 6, 2025
Number of Hedge Funds: 7
A 3.75% decline in value was seen in Northrim BanCorp, Inc. (NASDAQ:NRIM) during the last week from February 10 to 14, 2025.
The decline comes after Empowered Funds LLC reduced its ownership in Northrim BanCorp, Inc. (NASDAQ:NRIM) by 15.1% during the fourth quarter of 2024. After selling 3,132 shares of the financial holding company, Empowered Funds LLC owned approximately 17,565 shares of Northrim BanCorp, valued at over $1.3 million, by the end of the recent quarter. Similarly, other institutional investors bought and sold the company’s shares during the recent quarter, leading to a decline in the company’s valuation.
Northrim BanCorp, Inc. (NASDAQ:NRIM) offers a dividend yield of 3.05%, which is backed up by a dividend payout ratio of 37.16%. Since the company uses only one-third of its earnings for dividend payments, the remaining is retained for debt repayment purposes or future investments. However, the number of hedge fund portfolios owning a stake in the company amounts to 7, representing low interest from institutional investors. The next dividend payment for the company is March 14, 2025. Investors benefiting from this payout must purchase the company’s shares before March 6, 2025.
Overall, NRIM ranks 7th on our list of last week’s worst dividend stocks. While we acknowledge the potential for NRIM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NRIM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.