15 Dividend Stocks With Low Payout Ratios and Strong Upside

9. CNH Industrial N.V. (NYSE:CNH)

Number of Hedge Fund Holders: 42

5-Year Average Payout Ratio: 27.3%

Upside Potential as of December 24: 32.04%

CNH Industrial N.V. (NYSE:CNH) is among the best dividend stocks to invest in.

On December 22, Barclays lowered its price target on CNH Industrial N.V. (NYSE:CNH) to $11 from $14 and kept an Overweight rating. The change came as part of the firm’s 2026 outlook for the machinery and construction group. Barclays said it continues to favor machinery heading into next year, pointing to macro and cyclical factors that support the space.

Earlier in November, CNH announced plans to invest nearly $5 billion over the next five years in manufacturing and research and development facilities across the US. That commitment signals a longer-term focus on domestic production and technology. At the same time, the company said it will stop production at its Burlington, Iowa, assembly plant by the second quarter of 2026. Management cited weaker demand and underutilization. The closure is expected to affect about 200 employees. It is a difficult decision, but one tied to aligning capacity with current market conditions.

During the third-quarter 2025 earnings call, management discussed ongoing changes to CNH Industrial N.V. (NYSE:CNH)’s global supply chain and dealer network. The goal is to reduce exposure to volatility that can surface in the industry. Production levels remain intentionally low to manage steel inventories and clear older products.

The company is also investing in technology, including Agentic AI for FieldOps, while continuing to focus on quality. Year to date, management said quality-related costs have been reduced by more than $60 million. That kind of progress tends to show up gradually, but it matters over time.

CNH Industrial N.V. (NYSE:CNH) operates as a global provider of agricultural and construction equipment. Its portfolio includes well-known brands such as Case IH and New Holland, offering tractors, harvesters, excavators, and technology used across farming and construction markets.