Here's How Many Shares of Lowe's You Should Own to Get $500 in Yearly Dividends

Investing in dividend stocks can be an attractive strategy for income-oriented investors. Lowe's Companies, Inc. (NYSE: LOW) is a popular choice among home improvement retailers, offering a stable dividend and a history of consistent growth. If you're interested in generating $500 in yearly dividends from Lowe's, let's explore how many shares you would need to own.

First, let's examine Lowe's current dividend payout and yield. As of December 2024, Lowe's quarterly dividend is $1.15 per share, with an annual payout of $4.60 per share. The stock is trading at around $273.43, yielding approximately 1.7%. To achieve $500 in annual dividends, you would need to own approximately 109 shares.

However, it's essential to consider the potential impact of future dividend increases or decreases on the number of shares required to reach your target dividend income. Lowe's has a history of raising its dividend, with a recent increase of 4.5% in 2024. If the company maintains this growth rate, you may need fewer shares in the future to achieve the same payout.

For instance, if Lowe's dividend grows by 5% annually, you would need around 94 shares in five years to generate $500 in yearly dividends. Conversely, if dividends decrease or remain stagnant, you'd need more shares to reach the same payout.



In conclusion, to generate $500 in yearly dividends from Lowe's, you would need to own approximately 109 shares at the current stock price and dividend payout. However, keep in mind that future dividend increases or decreases may impact the number of shares required to achieve your target income. By monitoring Lowe's dividend growth and adjusting your share ownership accordingly, you can optimize your investment strategy for long-term success.