3 Low Payout Ratio High Dividend Stocks

The dividend payout ratio is simply a company’s annual per-share dividend, divided by the company’s annual earnings-per-share. It is a measure of the level of earnings a company distributes to its shareholders via dividends.

The payout ratio is a valuable investing metric because it differentiates the safest dividend stocks that have low payout ratios that room for dividend growth, from companies with high payout ratios whose dividends may not be sustainable.

Indeed, research has shown that companies with higher dividend growth have outperformed companies with lower dividend growth or no dividend growth.

This article will discuss 3 low payout ratio stocks that also have high dividend yields.

Sirius XM Holdings (SIRI)

Sirius XM Holdings is a leading audio entertainment company in North America. It operates through two segments: Sirius XM and Pandora & Off-platform.

The Sirius XM segment offers subscription-based satellite radio and streaming services, providing curated content across music, sports, talk, news, comedy, and podcasts.

It also offers safety, navigation, and real-time weather data via wireless connectivity, alongside commercial-free music for businesses.

The Pandora & Off-platform segment delivers personalized music, comedy, and podcast streaming experiences, accessible through various devices while generating revenue through advertising.

On October 30, 2025, Sirius XM Holdings Inc. reported third-quarter 2025 results with total revenue of approximately $2.16 billion and net income of $297 million, or $0.84 per diluted share. Adjusted EBITDA for the quarter was reported at $676 million and free cash flow stood at roughly $257 million.

Advertising revenue growth—particularly via Pandora’s premium-music and ad-supported streaming services—helped offset some subscription-revenue softness, while operating expenses were managed effectively, with digital-platform investment balanced against cost discipline.

The company reaffirmed its dividend policy at $0.27 per share for the quarter and indicated it will continue to prioritize free cash flow conversion and debt reduction. SIRI currently yields 5.2%.

Bristol-Myers Squibb (BMY)

Bristol-Myers Squibb is a leading drug maker of cardiovascular and anti-cancer therapeutics, and has annual revenues of about $46 billion.

On October 30th, 2025, Bristol-Myers reported third quarter results for the period ending September 30th, 2025. For the quarter, revenue grew 2.8% to $12.2 billion, which was $420 million above estimates. Adjusted earnings-per-share of $1.63 compared unfavorably to $1.80 in the prior year, but this was $0.11 more than expected.

Excluding currency exchange, sales were up 2%. U.S. revenues grew 1% to $8.3 billion. International grew 6% to $3.9 billion, but revenue was up 3% when excluding currency exchange.

Eliquis, which prevents blood clots, grew 25% to $3.75 billion as demand was strong for the product. Eliquis remains the top oral anticoagulant outside of the U.S. and generated more than $13 billion in revenue for 2024, which was a 9% increase from the prior year.

Opdivo, which treats cancers such as advanced renal carcinoma, was higher by 7% to $2.5 billion as global demand remains high. Bristol-Myers provided revised guidance for 2025 as well. Adjusted earnings-per-share are now projected to be in a range of $6.40 to $6.60 for the year.

BMY stock currently yields 5.2%.

Prudential Financial (PRU)

Prudential Financial, now in business for over 140 years, operates in the United States, Asia, Europe and Latin America, with more than $1.5 trillion in assets under management (AUM).

The company provides financial products – including life insurance, annuities, retirement-related services, mutual funds, and investment management. Prudential operates in four divisions: PGIM (formerly Prudential Investment Management), U.S. Businesses, International Businesses and Corporate & Other.

On October 29th, 2025, Prudential reported third results. For the quarter, the company reported net income of $1.43 billion, or $4.01 per share, versus net income of $448 million, or $1.24 per share, in the prior year.

After-tax adjusted operating income totaled $1.521 billion, or $4.26 per share, compared to $1.208 billion, or $3.33 per share. Adjusted EPS was $0.54 better than expected.

At quarter-end, Prudential held $1.612 trillion in AUM versus $1.558 trillion in the year ago period. Prudential’s adjusted book value per share equaled $99.25 compared to $98.71 in the year ago period. The company repurchased $250 million worth of shares during the quarter. Prudential has a total share repurchase authorization of $1 billion total for 2025.

PRU has a current yield of 5.0%.