Dividend stocks with lower payout ratios (2026)

Using payout ratio as a dividend safety signal

Dividend safety is one of the most important questions for income investors. While no single metric can guarantee a dividend is safe, payout ratio is a useful starting point because it shows how much of a company’s earnings are being returned as dividends. This screen focuses on dividend stocks with lower payout ratios in the Dividend Terminal coverage universe. A lower payout ratio can suggest more room to absorb earnings volatility, reinvest in the business, or continue raising the dividend. However, payout ratio must be interpreted in context. Utilities, REITs, financials, and industrial companies can have very different normal payout ranges. Accounting earnings may also differ from cash flow, especially in capital-intensive industries. Use this page as a dividend safety research tool, not a definitive safety ranking. Combine payout ratio with free cash flow, debt levels, profitability, dividend history, and management commentary.

Dividend stock screen

Symbol Company Yield Payout 5Y Growth Sector Mkt Cap
HAE Haemonetics Corporation - 0% - Industrials $4.7B
ENSG The Ensign Group, Inc. 0.15% 4% 4.6% Health Care $10.0B
HEI HEICO Corporation 0.08% 4% 7.6% Industrials $45.5B
FIX Comfort Systems USA, Inc. 0.22% 6% 37.0% Industrials $56.7B
LAD Lithia Motors, Inc. 0.72% 7% 12.5% Consumer Discreti… $8.5B
WRB W. R. Berkley Corporation 0.58% 8% 80.9% Financials $25.7B
GL Globe Life Inc. 0.76% 8% 7.5% Financials $13.4B
ALL The Allstate Corporation 1.66% 8% 14.3% Financials $65.6B
MCK McKesson Corporation 0.41% 9% 13.1% Health Care $105.9B
AL Air Lease Corporation 0.01% 9% 7.7% Industrials $7.3B
MATX Matson, Inc. 0.67% 10% 9.4% Industrials $6.7B
UNTY Unity Bancorp, Inc. 1.14% 11% 12.7% Financials $602M
WST West Pharmaceutical Services 0.26% 11% 5.5% Health Care $23.9B
AAPL Apple Inc. 0.34% 12% 5.0% Technology $4.7T
CHE Chemed Corporation 0.54% 12% 11.0% Consumer Staples $6.8B
WMS Advanced Drainage Systems 0.59% 13% 14.2% Materials $10.2B
MTRN Materion Corporation 0.24% 13% 4.1% Industrials $5.1B
CB Chubb Limited 1.19% 14% 4.3% Financials $131.8B
ROP Roper Technologies 0.89% 14% 10.0% Industrials $40.3B
KAI Kadant Inc. 0.48% 15% 7.3% Industrials $3.5B
ALG Alamo Group Inc. 0.76% 15% 18.4% Industrials $2.1B
HIG The Hartford Financial Services 1.73% 16% 10.7% Financials $37.5B
AGCO AGCO Corporation 0.90% 16% 13.0% Industrials $9.3B
RGA Reinsurance Group of America 1.55% 16% 5.4% Financials $16.5B
GCBC Greene County Bancorp 1.23% 17% 10.6% Financials $607M
DHI D.R. Horton, Inc. 1.26% 17% 18.0% Consumer Discreti… $39.9B
AON Aon plc 1.02% 17% 4.7% Financials $68.5B
WTFC Wintrust Financial Corp. 1.43% 17% 12.3% Financials $10.4B
CINF Cincinnati Financial Corporation 2.20% 17% 7.7% Financials $26.3B
COR Cencora, Inc. 0.73% 17% -14.7% Health Care $63.2B
GFF Griffon Corporation 0.88% 18% 20.6% Industrials $4.6B
NUE Nucor Corporation 0.86% 18% 6.6% Materials $59.2B
MA Mastercard Incorporated 0.60% 18% 13.7% Financials $507.4B
PRI Primerica, Inc. 1.61% 18% 21.1% Financials $9.1B
LRCX Lam Research Corporation 0.43% 18% 14.9% Technology $385.0B
RJF Raymond James Financial 1.21% 18% 15.6% Financials $34.2B
ISTR Investar Holding Corporation 1.54% 19% 12.0% Financials $428M
MORN Morningstar, Inc. 0.95% 19% 9.0% Technology $7.9B
STLD Steel Dynamics, Inc. 0.88% 19% 15.3% Materials $34.7B
ODC Oil-Dri Corporation 0.93% 19% 5.7% Materials -
FSFG First Savings Financial 0.02% 19% 26.1% Financials $238M
EVR Evercore Inc. 1.19% 19% 7.2% Financials $11.5B
HWKN Hawkins, Inc. 0.62% 20% 9.7% Materials $2.7B
MSFT Microsoft Corporation 0.73% 20% 10.2% Technology $3.7T
A Agilent Technologies, Inc. 0.68% 20% 6.4% Technology $42.5B
HBCP Home Bancorp, Inc. 1.78% 20% 5.4% Financials $554M
BRO Brown & Brown, Inc. 0.92% 21% 12.1% Financials $23.9B
SIGI Selective Insurance Group 1.84% 21% 10.8% Financials $5.5B
RGLD Royal Gold, Inc. 0.72% 21% 9.9% Materials $22.2B
NRIM Northrim BanCorp, Inc. 2.46% 21% 13.7% Financials $588M

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FAQ

Is low payout always “safe”?
No. Earnings can be volatile, and accounting metrics differ by industry. Use cash flow and business quality alongside payout.