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Lowe's Companies Inc. (LOW) logo

Lowe's Companies Inc.

Dividend AristocratS&P 500
LOW|Consumer Cyclical|Home Improvement Retail|$229.20|P/E 19.5|MCap 128.4B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

70/ 100Safe

LOW's dividend appears safe and well-supported. Strengths include a 40.1% earnings payout ratio & 34.4% fcf payout ratio. Areas of concern: 80.7% net debt / total assets & -4.5 debt-to-equity. As a Dividend Aristocrat with 25+ consecutive years of increases, LOW has a proven commitment to shareholders.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 40.1%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 34.4%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 26.9%Operating cash flow strongly supports the payout.

Risks

  • Net Debt / Total Assets: 80.7%Net debt is high relative to total assets.
  • Debt-to-Equity: -4.5Debt-to-equity is elevated for the sector.
  • Return on Equity: -66.9%Return on equity is below industry norms.

Payout & Coverage

Very Safe
Earnings Payout Ratio
40.1%Very Safe
FCF Payout Ratio
34.4%Very Safe
CFO Payout Ratio
26.9%Very Safe
Interest Coverage
6.7xSafe

Balance Sheet

Warning
Net Debt / Total Assets
80.7%Danger
Current Ratio
1.1xCaution
Debt-to-Equity
-4.5Danger

Profitability

Caution
Return on Equity
-66.9%Danger
Operating Margin
8.6%Caution
Gross Margin
32.5%Caution
Profit Margin Stability
StableSafe

Dividend Track Record

Very Safe
Dividend Streak
Aristocrat (25+ yrs)Very Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
15.9%Very Safe
Earnings Stability
GrowingVery Safe

About Lowe's Companies Inc.

Lowe's Companies is the second-largest home improvement retailer, operating more than 1,750 stores across the United States. The company provides a comprehensive range of products for maintenance, repair, remodeling, and home decorating, including appliances, lumber, tools, hardware, building materials, paint, flooring, kitchens and bath fixtures, electrical supplies, and outdoor living items. Lowe's serves both do-it-yourself homeowners, representing approximately 70% of sales, and professional contractors, a segment that has grown to roughly 30% of the business. The company offers additional services such as installation, equipment rental, and contractor-focused sales programs through its Pro business. Lowe's distributes products via its extensive store network and digital channels, positioning itself as a key player in the residential and commercial home improvement market. Headquartered in Mooresville, North Carolina, and founded in 1946, Lowe's continues to expand its professional services and online capabilities to serve diverse customer segments in the home improvement sector.

Dividend Overview

Dividend Yield

2.09%

Annual Dividend

$4.80

Frequency

Quarterly

Payout Ratio

40.08%

FCF Payout Ratio

34.45%

Stock Price

$229.20

52-Week Range

$210.33 $293.06

Dividend History (2016–2025)

LOW annual dividend per share and yield history

Earnings & Profitability

LOW earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

April 22, 2026

Last Payment Date

May 6, 2026

Dividend Growth

3-Year Dividend CAGR

8.30%

5-Year Dividend CAGR

15.87%

10-Year Dividend CAGR

16.51%

3-Year Total Growth

27.03%

5-Year Total Growth

108.89%

10-Year Total Growth

360.78%

Dividend Aristocrat (25+ yrs)

This company has increased its dividend for 25+ consecutive years.

Income Calculator

LOW Dividend Calculator

Total Investment

$22,920.00

Annual Income

$480.00

Quarterly Income

$120.00

Monthly Income

$40.00

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Frequently Asked Questions

What is LOW's current dividend yield?
Lowe's Companies Inc. (LOW) currently has a dividend yield of 2.09%, based on a stock price of $229.20 and an annual dividend of $4.80.
When is LOW's next dividend payment date?
LOW's next ex-dividend date is 2026-04-22 and the next payment date is 2026-05-06. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does LOW pay in dividends per year?
Lowe's Companies Inc. paid $4.70 per share in annual dividends in 2025. The dividends are paid quarterly.
Has LOW been increasing its dividend?
Yes, Lowe's Companies Inc. is a Dividend Aristocrat (25+ yrs). Its dividend has grown at a 5-year CAGR of 15.87%, a 3-year CAGR of 8.30% and a 10-year CAGR of 16.51%.
Is LOW's dividend safe?
Lowe's Companies Inc. has a payout ratio of 40.08%. Its free cash flow payout ratio is 34.45%. A payout ratio below 60% is generally considered sustainable.
How is LOW's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Lowe's Companies Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for consumer cyclical companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.