15 Dividend Stocks With Low Payout Ratios and Strong Upside

2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 112

5-Year Average Payout Ratio: 27.29%

Upside Potential as of December 24: 48.2%

Vistra Corp. (NYSE:VST) is among the best dividend stocks to invest in.

On December 16, Morgan Stanley analyst David Arcaro raised the firm’s price target on Vistra Corp. (NYSE:VST) to $228 from $225 and kept an Overweight rating on the shares. In a year-ahead note, he told investors that utility performance will be heavily driven by data centers, with added growth potential showing up in 2026.

A few days earlier, on December 3, Vistra Corp. (NYSE:VST) picked up an important win. S&P Global Ratings upgraded the company to investment grade. Vistra came together nearly a decade ago as a spinoff from the bankrupt Energy Future Holdings Corp., and the rating change marks a clear shift in how the business is viewed.

Roughly 35% of Vistra’s generation capacity sits within the PJM Interconnection grid, which stretches from Chicago to Washington, DC. S&P sees strong tailwinds in that region, driven largely by accelerating data-center demand. The firm made the following remark:

“The company’s exposure to fluctuating wholesale power prices is modest. About 96% of the expected generation for 2026 is hedged.”

Investor interest has followed that theme. Companies that own power plants capable of supporting energy-intensive data centers have drawn steady attention this year. Vistra Corp. (NYSE:VST)’s shares have more than quadrupled since the start of last year, a move that reflects the demand.

Vistra operates as an integrated retail electricity and power generation company, supplying essential power resources to customers.