Lowe’s raises quarterly dividend to $1.20 per share

Published 30/05/2025, 13:58
Lowe’s raises quarterly dividend to $1.20 per share

MOORESVILLE, N.C. - Lowe’s Companies, Inc. (NYSE: LOW), a leading home improvement retailer, has announced a 4% increase in its quarterly cash dividend to $1.20 per share, payable on August 6, 2025, to shareholders on record as of July 23, 2025. The increase from the previous dividend of $1.15 per share, resulting in a current yield of 2.05%, reflects the company’s confidence in its long-term growth strategy and commitment to delivering shareholder value. According to InvestingPro, Lowe’s has maintained dividend payments for 55 consecutive years and raised them for 41 straight years.

Marvin R. Ellison, Lowe’s chairman, president, and CEO, remarked on the company’s ongoing transformation and its readiness to leverage the anticipated recovery in the home improvement sector. He cited the dividend hike as a reflection of the Board’s belief in the company’s strategic investments and disciplined capital allocation. With an EBITDA of $12.48 billion and a "GOOD" Financial Health Score from InvestingPro, the company demonstrates strong operational performance.

Lowe’s, with a history of paying a cash dividend every quarter since its initial public offering in 1961, has now raised its dividend for over 25 consecutive years. The company operates more than 1,700 stores across the United States, generating over $83 billion in sales for the fiscal year 2024 and employing roughly 300,000 associates.

The information in this article is based on a press release statement from Lowe’s Companies, Inc. The forward-looking statements in the press release involve risks and uncertainties, and actual results may differ materially from those projected. Factors that could affect these results include economic conditions, consumer spending, and the company’s ability to execute its strategic initiatives effectively. Lowe’s advises caution in reliance on forward-looking statements, which are valid only as of their date.

In other recent news, Lowe’s Companies Inc. reported first-quarter earnings that exceeded some analysts’ expectations, with notable strength in comparable store sales. However, various analysts have adjusted their price targets for the company. Stifel reduced its price target from $250 to $240, citing concerns about the sustainability of sales growth despite the strong first-quarter performance. Similarly, BNP Paribas Exane lowered its price target to $207, maintaining an Underperform rating, pointing to challenges in the do-it-yourself market and competitive pressures from Home Depot. RBC Capital Markets also revised its price target slightly downward to $242, while maintaining a Sector Perform rating, due to softer demand in certain categories and tariff-related costs.

TD Cowen maintained its Hold rating with a $245 price target, expressing confidence in Lowe’s ability to manage tariffs and highlighting the company’s acquisition of Associated Distributors Group as a strategic move into the new home construction market. The acquisition is expected to contribute to Lowe’s long-term growth, although its immediate impact on financial performance is limited. Analysts across the board have noted both challenges and opportunities for Lowe’s, with the company actively working to enhance its market reach amidst a complex economic landscape. These developments reflect a cautious but steady outlook for Lowe’s as it navigates current market conditions and competitive dynamics.

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