June 20, 2026 a 03:31 am
LOW: Dividend Analysis - Lowe's Companies, Inc.
Lowe's Companies, Inc. showcases a robust dividend profile with a current yield of 2.18%. With over 42 years of dividend stability, this company emphasizes reliability in cash returns to its shareholders. The company's consistent dividend growth over the years makes it an attractive choice for income-focused investors.
📊 Overview
Lowe's operates within the retail sector, displaying a dividend yield of 2.18% alongside a current dividend per share of $4.72. Maintaining a 42-year trend in dividend history, the firm has shown resilience with no recent cuts or suspensions. This enduring track record is indicative of sound financial management and a focus on shareholder value.
| Metric | Value |
|---|---|
| Sector | Retail |
| Dividend Yield | 2.18 % |
| Current Dividend per Share | $4.72 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Lowe's has demonstrated consistent dividend increases over multiple decades, serving as a testament to its commitment to returning value to shareholders. This stability is an attractive feature for long-term income investors seeking reliability.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 3.65 |
| 2025 | 4.70 |
| 2024 | 4.50 |
| 2023 | 4.30 |
| 2022 | 3.70 |
📈 Dividend Growth
The growth in dividends over the past few years illustrates Lowe's capability to enhance its shareholder returns. An in-depth analysis over the 3-year and 5-year horizons shows a clear upward trajectory in dividend growth.
| Time | Growth |
|---|---|
| 3 years | 8.30 % |
| 5 years | 15.87 % |
The average dividend growth is 15.87 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Understanding Lowe's payout ratios is crucial for assessing the sustainability of its dividends. With an EPS-based payout ratio of 39.69% and a free cash flow-based ratio of 34.70%, the company maintains a balanced approach, suggesting a sustainable dividend yield.
| Key Figure Ratio | Value |
|---|---|
| EPS-based | 39.69 % |
| Free cash flow-based | 34.70 % |
These payout ratios imply prudent dividend management, balancing between retaining earnings for growth and rewarding shareholders.
💼 Cashflow & Capital Efficiency
A strong free cash flow yield and efficient capital allocation ratios highlight Lowe's effective use of resources to fuel operations and shareholder returns. These finance metrics are crucial for evaluating liquidity and efficiency.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 5.13 % | 5.22 % | 4.99 % |
| Earnings Yield | 4.46 % | 4.72 % | 6.24 % |
| CAPEX to Operating Cash Flow | 22.53 % | 22.04 % | 24.13 % |
| Stock-based Compensation to Revenue | 0.29 % | 0.26 % | 0.24 % |
| Free Cash Flow / Operating Cash Flow Ratio | 77.56 % | 79.98 % | 75.87 % |
Lowe's exhibits a solid cash flow foundation with efficient capital utilization, enhancing the potential for enduring shareholder value creation.
📉 Balance Sheet & Leverage Analysis
Examining Lowe's financial leverage and liquidity metrics provides valuable insights into its debt management and balance sheet strength, essential for long-term financial health.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | -4.51 | -2.79 | -2.67 |
| Debt-to-Assets | 82.52 % | 89.02 % | 92.59 % |
| Debt-to-Capital | 128.53 % | 155.92 % | 159.97 % |
| Net Debt to EBITDA | 4.09 | 3.01 | 2.89 |
| Current Ratio | 1.09 | 1.08 | 1.23 |
| Quick Ratio | 0.19 | 0.16 | 0.14 |
| Financial Leverage | -5.46 | -3.13 | -2.88 |
The company's debt ratios imply a high leverage model; however, its robust interest coverage offers a degree of protection against financial distress.
🔍 Fundamental Strength & Profitability
Key profitability metrics and return ratios shed light on Lowe's operational efficiency and profitability prospects, vital for assessing return on investment and economic value.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | -67.10 % | -48.89 % | -51.34 % |
| Return on Assets | 12.29 % | 15.61 % | 17.82 % |
| Return on Invested Capital | 20.42 % | 26.54 % | 30.40 % |
| Margins: Net | 7.71 % | 8.31 % | 8.94 % |
| EBIT | 10.14 % | 12.69 % | 13.48 % |
| EBITDA | 12.39 % | 15.05 % | 15.71 % |
| Gross | 33.48 % | 31.25 % | 31.41 % |
| Research & Development to Revenue | 0.00 % | 0.00 % | 0.00 % |
Lowe's showcases strong asset returns and consistent profitability margins, underlining its ability to generate significant shareholder returns.
📈 Price Development
✅ Dividend Scoring System
Our dividend scoring system evaluates key aspects of Lowe's dividend profile, combining yield, stability, growth, and financial health.
| Criterion | Rating | Score |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 33/40
📊 Rating
Overall, Lowe's Companies, Inc. displays a strong dividend profile marked by stable payout ratios, growth potential, and robust financial metrics. The company's consistent dividend increases, in tandem with strategic financial management, make it a compelling choice for dividend-focused investors. Despite high leverage, its financial metrics and stability still denote a viable long-term investment.
Smart Data Insight
Master the Perfect Entry & Exit for this Stock
Don't leave your profits to chance. Historically, this stock follows specific seasonal patterns that institutional traders use to maximize returns.
- ✅ Identify the "Golden Buying Window"
- ✅ Avoid high-risk correction cycles
- ✅ Backtested data from the last 20+ years