LOW - Lowe's: Dividend King With Limited Growth

2024-06-24 11:49:11 ET

Summary

• Lowe's is a US-based home improvement retailer that has a strong dividend history of over 60 years of consecutive growth.
• Despite a decrease in revenue and comparable sales, Lowe's is investing in new loyalty programs and rewards to drive growth.
• The poor sales performance can be attributed to lower consumer spend, likely caused by higher inflation and a higher interest rate environment.
• Although the dividend yield remains low at 2%, the high double-digit dividend growth rate makes this a strong contender for a dividend growth portfolio.

Overview

I became a homeowner over the last year, and I never thought I'd be visiting my local Lowe's ( LOW ) so often. I always knew that LOW had the reputation as a great company, but these frequent visits prompted me to take a deeper look into the company to see what growth prospects look like, as well as what the current performance in the current economic environment. We can see that LOW's price and total return have remained strong and never fell back to those pandemic-era price levels of 2020....

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