5 Dividend Stocks With Low Payout Ratios and Strong Upside Potential

3. Cheniere Energy, Inc. (NYSE:LNG)

Upside Potential as of June 24: 33.18%

5-Year Average Payout Ratio: 17.03%

On June 17, Bernstein initiated coverage of Cheniere Energy, Inc. (NYSE:LNG)with an Outperform rating. It also set a $283 price target on the stock. The firm said Cheniere has 95% of its portfolio tied to long-duration contracts. It also expects the company’s brownfield capital spending to support high-return expansion projects, giving the business a relatively low-risk profile.

Earlier, on June 3, JPMorgan raised its price recommendation on LNG to $327 from $325. It reiterated an Overweight rating. The firm believes the recent weakness in the stock presents a long-term buying opportunity.

Cheniere Energy, Inc. (NYSE:LNG) is a producer and exporter of liquefied natural gas (LNG) in the United States. The company supplies clean and secure LNG to integrated energy companies, utilities, and energy trading companies around the world.