Lowe’s Builds on Stable Demand and Shareholder Returns

Lowe’s Companies, Inc. (NYSE:LOW) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026.

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Lowe’s Companies, Inc. (NYSE:LOW) stands out as a reliable dividend payer. The company maintains a payout ratio of roughly 40% of earnings and an even smaller share of free cash flow. That coverage leaves room for the dividend to grow while still funding reinvestment and share buybacks. The current yield sits near 2%.

The business itself is built for durability. As one of the largest home improvement retailers in the US, Lowe’s Companies, Inc. (NYSE:LOW) benefits from steady demand tied to home maintenance, repairs, and remodeling. Those needs do not disappear easily, even when the economy slows.

Management has leaned into two areas that matter. One is expanding the professional contractor business. The other is improving omnichannel capabilities. Together, those moves have helped keep revenue stable through several uncertain years. Earnings growth tells a similar story as over the past decade, earnings per share have increased by roughly 350%, reflecting both operational gains and capital discipline.

The company’s revenue comes from a few core channels. The largest is the DIY segment, driven by homeowners handling their own projects. The Pro segment follows, serving small and mid-sized contractors along with property managers. That mix gives the company exposure to both consumer spending and professional construction activity.

In 2025, Lowe’s Companies, Inc. (NYSE:LOW) made a clear push into the professional contractor market, which management sees as a roughly $250 billion opportunity. In June, the company completed the $1.33 billion acquisition of Artisan Design Group. ADG focuses on design and installation services for interior finishes such as flooring and cabinets, with a customer base that includes large homebuilders.

That expansion continued in October with the $8.8 billion acquisition of Foundation Building Materials. The deal brought more than 370 locations across North America and added a broad distribution network for interior products like drywall, metal framing, and ceiling systems.

Lowe’s Companies, Inc. (NYSE:LOW) operates as a full-service home improvement retailer, offering products for construction, maintenance, repair, remodeling, and decorating across a wide range of categories.

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