5 Dividend Stocks With Low Payout Ratios and Strong Upside Potential

In this article, we will take a look at the 5 Dividend Stocks With Low Payout Ratios and Strong Upside Potential. For deeper discussion and analysis, read 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential. 

Image by Steve Buissinne from Pixabay

5. The Andersons, Inc. (NASDAQ:ANDE)

Upside Potential as of June 24: 29.74%

5-Year Average Payout Ratio: 26.40%

On June 18, Texas Capital initiated coverage of The Andersons, Inc. (NASDAQ:ANDE) with a Buy rating. It set a $110 price target on the stock. The analyst said the company offers “differentiated exposure” to the U.S. ethanol and renewable feedstocks industries through its vertically integrated business model. In a research note, the firm added that Andersons is well-positioned to benefit from an “increasingly constructive” macro environment for ethanol.

During the company’s first-quarter 2026 earnings call, CEO, President, and Director William Krueger said the quarter marked a major milestone with the finalization of the largest-ever renewable volume obligations for 2026 and 2027.

Krueger also said construction at the company’s Port of Houston facility was progressing as planned, with full operations expected to begin in the third quarter. He added that the Carlsbad Mineral plant had become operational, while upgrades to increase clean corn capacity at the company’s Mansfield, Illinois, facility were underway.

Executive Vice President and CFO Brian Valentine reported that The Andersons generated net income attributable to the company of $33 million, or $0.97 per diluted share, in the first quarter of 2026. Adjusted net income totaled $38 million, or $1.12 per diluted share.

Valentine also said the company had qualified for the next tier of 45Z tax credits in 2026, as expected, and recognized $26 million of those credits during the first quarter.

The Andersons, Inc. (NASDAQ:ANDE) is a diversified company with Agribusiness and Renewables as its two operating segments. The Agribusiness segment includes commodity merchandising, terminal grain elevator operations, and the manufacturing and distribution of plant nutrient products.