Lowe's Companies Inc. shares have crossed the 2% yield mark due to its quarterly dividend of $4.8. Historically, dividends have provided a considerable share of the stock market's total return. The company has been growing its dividend for over 20 years consecutively, making it a good candidate for dividend investors.
Lowe's Companies Inc. shares have recently crossed the 2% yield mark, driven by its quarterly dividend of $4.80. This development is notable for dividend investors, as historically, dividends have contributed significantly to the stock market's total return. With over 20 years of consecutive dividend growth, Lowe's Companies Inc. is a promising candidate for dividend-focused investors.
Dividend Yield and Payout
Lowe's Companies Inc. currently offers a dividend yield (FWD) of 1.99% [1]. The company expects to pay an annual payout of $4.80 for the next 12 months, which corresponds to a dividend yield of approximately 1.99%. This dividend is paid quarterly and distributed in US Dollars [1].
Historical Dividend Growth
Lowe's Companies Inc. has a long history of increasing its dividends, with a 53-year streak of consecutive dividend increases. This consistency makes the company a reliable choice for dividend investors seeking stable income streams [2]. The company's dividend growth rate (CAGR) over various periods is as follows:
- 1Y: 4.35%
- 2Y: 4.65%
- 3Y: 4.55%
- 4Y: 4.55%
- 5Y: 4.76%
- 6Y: 4.76%
- 7Y: 4.55%
- 8Y: 4.55%
- 9Y: 4.55%
- 10Y: 4.55%
Impact of High Mortgage Rates
Despite the recent lag in Lowe's stock performance, high mortgage rates present an opportunity for the company. High interest rates have made homeownership less attractive, leading many homeowners to opt for renovations and DIY projects instead. Lowe's, being a major home improvement retailer, stands to benefit from this shift in consumer behavior [2].
Conclusion
Lowe's Companies Inc.'s recent crossing of the 2% yield mark, combined with its long history of dividend growth, makes it an attractive option for dividend investors. As high mortgage rates continue to influence consumer spending, Lowe's position in the home improvement sector could see a boost. However, investors should consider the broader market conditions and Lowe's stock performance before making any investment decisions.
References
[1] Divvydiary. (n.d.). Lowe's Companies Inc. Retrieved from https://divvydiary.com/en/lowes-companies-stock-US5486611073
[2] The Motley Fool. (2025, August 7). 1 Reason to Watch Lowe's Stock in 2025. Retrieved from https://www.fool.com/investing/2025/08/07/1-reason-to-watch-lowes-stock-in-2025/
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