3 Dividend Stocks With a Market Cap Below $10B and Big Upside

If you are a dividend investor who wishes to go off the beaten path and secure large gains while doing so, it’s a good idea to look into dividend stocks with a market cap below $10 billion. DHT Holdings (NYSE:DHT), LTC Properties (NYSE:LTC), and Flowers Foods (NYSE:FLO | FLO Price Prediction) come with attractive dividends and solid upside potential over the coming years.

Their smaller sizes mean you will have to sacrifice a little on the safety, but they don’t have to be primary holdings. If you keep them as high-yield satellite bets and they end up making a full recovery in earnest, your position can quickly snowball, especially if you reinvest the dividends.

With that in mind, let’s take a look at these dividend stocks.

DHT Holdings (DHT)

DHT Holdings is an independent crude oil company. It has a fleet that carries crude oil over the oceans, and this business has turned very profitable, very quickly. Just four years back, you’d imagine tanker companies as unstable and highly dependent on oil prices, but the environment is changing fast.

Thanks to recent-ish geopolitical events, these tanker companies have a lot more leverage over their customers.

First things first, the 2022 conflict in Eastern Europe turned the United States into Europe’s main energy supplier instead of Russia. The pipelines were turned off, and tankers started being used instead, especially for LNG. This company does not have LNG tankers, but crude oil tankers are also in high demand. Then, the 2023 conflict in the Middle East made the two most critical sea chokepoints into hazard zones.

All of this has resulted in DHT stock being up nearly 136% over the past five years. The dividend yield is 5.84% and I see more room for increase as crude oil tankers remain in hot demand.

LTC Properties (LTC)

LTC Properties is a real estate investment trust (REIT) that invests in senior housing and healthcare properties. I see plenty of upside in the coming years as demographic realities make the contrary highly unlikely.

Let’s take Baby Boomers, who were born from 1946 to 1964. Fertility rates back then were well above 3 children per woman during that period, which sharply declined to just 1.74 by 1976. The oldest of this large cohort is just turning 80, with the youngest turning 62.

Thus, the next two decades are expected to see a cascade of individuals demanding senior housing and related services. Unfortunately, there’s a capacity issue.

4,000 senior living units are expected to be built in 2025, with another 4,000 in 2026. 100,000 new beds are needed each year through 2040, to the point where there’s expected to be a shortfall of 595,000 units by 2030.

I expect LTC Properties to benefit disproportionately from this. You get a 6.62% dividend yield while you wait. Dividends are paid monthly.

Flowers Foods (FLO)

Flowers Foods is a riskier investment of the three stocks in this list. FLO stock has been actively getting clobbered. The company makes bakery products that fall neatly into the broader snacks industry, the same industry that has been hit hard by GLP-1 drugs like Ozempic.

FLO stock is down over 63% from its December 2022 peak. It has had an admirable past as FLO stock was on a stable two-decade trajectory that it only broke off in the past three years.

It may turn out to be a huge opportunity if Flowers Foods can successfully turn the business around. Growth is still anemic, and margins are tight, but the stock trades below 11 times forward earnings.

The forward dividend yield is over 9% and has been increasing for 12 consecutive years. The forward payout ratio of 88.64% may look scary, but that may be a little misleading. Levered free cash flow (FCF after paying debt) was $50 million in Q3 2025, whereas net income was $39.5 million. The true dividend-paying capacity is higher than many expect.