The S&P 500 has been historically overvalued (in hindsight) non-stop since 2010 using the Shiller P/E ratio. The historical average Shiller P/E ratio is 17.3. It’s currently at 38.1. Therefore, the S&P 500 is 121% overvalued according to the Shiller P/E ratio.

The big takeaway from this is that the market is trading at a very high valuation multiple today, relative to its history.

The following 3 overvalued dividend stocks should be avoided.

Kulicke & Soffa Industries (KLIC)

Kulicke & Soffa Industries Inc. is a manufacturer and distributor of production equipment for semiconductor devices. The company operates in two business segments: Capital Equipment and Aftermarket Products & Services.

It is headquartered in Singapore and trades on the NASDAQ Exchange. Kulicke & Soffa has annual revenues of approximately $700 million.

On May 6th, 2025, Kulicke & Soffa reported results for the second quarter of fiscal year 2025. For the quarter, revenue declined 5.8% to $162 million, which was $3.1 million less than expected.

Adjusted earnings-per-share of -$0.52 compared favorably to adjusted earnings-per-share of -$0.95 in the prior year.

For the quarter, Automotive, General Semi, and Aftermarket Product and Services were roughly equal from Q2 2024 while Memory declined considerably. For the quarter, Kulicke & Soffa’s adjusted operating margin of (16.9%) was down from Q1 2025.

Continued losses and negative margins are a bad sign for the future. 

Fortitude Gold Corp. (FTCO)

Fortitude Gold Corporation was spun-off from Gold Resource Corporation into a separate public company in December 2021. Fortitude Gold is a junior gold producer with operations in Nevada, U.S.A, one of the world’s premier mining friendly jurisdictions.

The company targets high-grade gold open pit heap leach operations averaging one gram per tonne of gold or greater. Its property portfolio currently consists of 100% ownership in seven high-grade gold properties.

All seven properties are within an approximate 30-mile radius of one another within the prolific Walker Lane Mineral Belt. The company generated $37.3 million in revenues last year, the majority of which were from gold, and is based in Colorado Springs, Colorado.

On April 29th, 2025, Fortitude Gold released its first-quarter 2025 results for the period ending March 31st, 2025. For the quarter, revenues came in at $6.5 million, marking a 20% decline compared to Q1 2024.

The decrease in revenue was largely due to a 41% drop in gold sales volume and a 26% decrease in silver sales volume. These declines were partially offset by a 38% increase in gold prices and a 38% increase in silver prices.

Moving to the bottom line, Fortitude reported a mine gross profit of $3.3 million compared to $4.2 million the previous year, reflecting the lower net sales.

The company also announced a reduction in its monthly dividend from $0.04 to $0.01 per share, effective with the May 2025 payment.

Declining revenue and a significant dividend cut are major reasons to avoid FTCO right now.

Hyster-Yale (HY)

Hyster-Yale Materials Handling was founded in 1985 and has since become a prominent global player in the materials handling industry.

The company designs, manufactures, and sells a comprehensive range of lift trucks and aftermarket parts, serving diverse customers across various sectors, including manufacturing, warehousing, and logistics.

The company segments its revenue primarily into three categories: new equipment sales, parts sales, and service revenues.

On May 6th, 2025, the company announced results for the first quarter of 2025. The company reported Q1 non-GAAP EPS of $0.49, in-line with analysts’ estimates, and produced revenue of $910.4 million, which was down 14.1% year-over-year.

Hyster-Yale opened the year with Q1 2025 consolidated revenues of $910 million, down 14% from last year, as softer lift truck demand carried over from late 2024.

Net income dipped to $8.6 million compared to $51.5 million a year ago, as lower production volumes and cost pressures weighed on margins. Inventory levels improved, down $69 million versus Q1 2024, showing early progress in aligning production with current demand trends.