5 Best Dividend Growth Stocks to Buy and Hold for 3 Years

In this article, we will take a look at the 5 Best Dividend Growth Stocks to Buy and Hold for 3 Years. For deeper discussion and analysis, read 10 Best Dividend Growth Stocks to Buy and Hold for 3 Years. 

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5. Lowe’s Companies, Inc. (NYSE:LOW)

5-Dividend Growth Rate: 15.35%

On May 21, Telsey Advisory Group lowered its price recommendation on Lowe’s Companies, Inc. (NYSE:LOW) to $280 from $295. It reiterated an Outperform rating on the stock. The firm said Lowe’s continues to execute its strategy despite uncertainty in the broader economy and ongoing weakness in the housing market. According to the analyst, the company’s approach is helping drive positive comparable sales results. DIY consumer spending also remained stable, and Lowe’s kept its 2026 guidance unchanged. Telsey added that it believes the higher end of the company’s EPS outlook remains achievable.

On the same day, Piper Sandler lowered its price goal on LOW to $276 from $300. It maintained an Overweight rating after the company reported in-line results and reaffirmed its guidance. The firm noted that the home improvement sector remains slow, though Lowe’s still posted its fourth straight quarter of positive comparable sales. Piper said the company’s Q2 EPS outlook came in below expectations, but added that margin pressure tied to acquisitions should begin easing in the second half of the year. The firm also said Lowe’s full-year guidance remains reasonable. Looking ahead to 2027, Piper reduced its bullish stance slightly and lowered its valuation multiple assumption from 21 times to 20 times to better reflect Lowe’s historical discount to the S&P’s valuation.

Lowe’s Companies, Inc. (NYSE:LOW) sells products used for construction, maintenance, repair, remodeling, and decorating.