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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.

Sunoco LP (SUN)

Sunoco is a master limited partnership that distributes a range of fuel products (wholesale and retail) and that is active in some adjacent industries such as pipelines. The wholesale unit purchases fuel products from refiners and sells those products to both its own and independently owned dealers.

Sunoco reported its third quarter earnings results in November. The company reported that its revenues totaled $6.03 billion during the quarter, which was 5% more than the revenues that Sunoco generated during the previous year’s quarter. This was a better year-over-year performance compared to the previous quarter.

Fuel prices movements can result in meaningful ups and downs in Sunoco’s revenues and its revenue growth rate on a quarterly basis, although there is not necessarily a big impact on profits, as Sunoco’s expenses move as well when fuel prices move.

Sunoco reported that its adjusted EBITDA was up 7% year over year, improving to $489 million during the quarter. Distributable cash flows totaled $326 million during the quarter, which was lower compared to the previous year’s quarter, and which equated to DCF of $2.38 per share, which covered the dividend easily.

Sunoco has closed the Parkland acquisition during the most recent quarter, which could result in improved growth going forward.

DENTSPLY Sirona (XRAY)

Dentsply Sirona is a medical device company that manufacturers products and technologies for use in dentistry and is the world’s largest dental equipment supplier. The company’s product portfolio consists of solutions for dental and oral health care. Dentsply Sirona has four reportable business segments.

This includes Connected Technology Solutions, which develops and produces dental technology and equipment, and Essential Dental Solutions, which provides endodontic, restorative, and preventive consumable products along with small equipment for use in dental offices.

Other business segments include Orthodontic and Impact Solutions, which creates dental implant products, dentures, and aligners, and Wellspect Healthcare, which designs and markets continence care solutions for both urinary and bowel management.

On November 6th, 2025, Dentsply Sirona announced second quarter results for the period ending June 30th, 2025. For the quarter, revenue declined 4.9% to $904 million, but this was $6.3 million above estimates. Adjusted earnings-per-share was $0.37 per share compared unfavorably to $0.50 in the prior year and was $0.08 less than expected.

In constant currency, sales were lower by 8% for the quarter. Orthodontic and Implant Solutions was down 17.1%, Connected Technology Solutions fell 7.0%, and Essential Dental Solutions was lower by 6.2%.

Wellspect Healthcare, the lone segment to post growth, grew 9.3%. By geographic regions, the U.S. was down 22.2%, Europe grew 2.6%, and Rest of the World decreased 0.9%. The company’s gross profit margin contracted 330 basis points to 48.8%.

Dentsply Sirona provided updated guidance for 2025 as well. The company now expects sales to fall in a range of -2.5% to -5.0% compared to -2.0% to -4.0% previously. Adjusted earnings-per-share is now projected to be ~$1.60, down from a prior range of $1.80 to $2.00.

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.

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