10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential

7. Bath & Body Works, Inc. (NYSE:BBWI)

Upside Potential as of June 24: 21.07%

5-Year Average Payout Ratio: 19.85%

On June 23, Wells Fargo raised its price recommendation on Bath & Body Works, Inc. (NYSE:BBWI) to $26 from $25. It reiterated an Overweight rating on the shares. The firm said bearish investors remain focused on low-single-digit core growth and limited visibility into future innovation. Still, its recent channel checks suggest that new product launches and innovation expected in July could quickly improve investor sentiment and change the narrative, according to the analyst’s research note.

Also on June 23, Reuters reported that shoppers at Ulta Beauty will soon be able to buy Bath & Body Works’ signature fragrances, hand soaps, and candles at more than 600 stores beginning July 12, as both companies continue turnaround efforts that include expanding brand partnerships.

Part of Bath & Body Works’ “Consumer First Formula” is designed to give customers more ways to shop for the company’s lotions and candles. At the same time, the “Ulta Beauty Unleashed” strategy aims to introduce more brand partnerships to help drive sales growth.

Bath & Body Works, Inc. (NYSE:BBWI) is a global omnichannel retailer focused on personal care and home fragrance. The company offers a range of fragrances for the body and home.