MOORESVILLE, N.C. – Lowe's Companies, Inc. (NYSE: LOW) announced today that its board of directors has approved a 5% increase in its quarterly cash dividend to $1.15 per share, set to be paid on August 7, 2024, to shareholders on record as of July 24, 2024. The home improvement retailer's latest dividend marks an uptick from the previous $1.10 per share.
Marvin R. Ellison, Lowe's chairman, president and CEO, expressed optimism about the company's future, citing confidence in Lowe's growth strategy and commitment to delivering shareholder value as the rationale behind the dividend hike. Lowe's has a long-standing tradition of rewarding its shareholders, having paid a cash dividend every quarter since its initial public offering in 1961, and has consistently increased its dividend for over 25 consecutive years.
Lowe's serves approximately 16 million customer transactions a week in the United States and reported sales exceeding $86 billion in the fiscal year 2023. The company operates more than 1,700 home improvement stores and employs around 300,000 associates. Headquartered in Mooresville, N.C., Lowe's also engages in community support initiatives aimed at creating safe, affordable housing and fostering the development of skilled trade experts.
The press release also contained forward-looking statements, cautioning that actual results might differ materially from those projected due to a variety of risks and uncertainties. These include economic conditions, consumer spending, labor supply, interest and currency rates, housing market dynamics, credit availability, geopolitical events, and other factors that could impact customers and the company's operations.
This dividend announcement is based on a press release statement and reflects Lowe's strategic financial decisions as it continues to evolve in the competitive home improvement retail market.
In other recent news, Lowe's Companies Inc (NYSE:LOW). has been the subject of several analysts' reports following its first-quarter earnings release. BofA Securities maintained its Buy rating on Lowe's, citing the company's successful advancement with its Total Home strategy and anticipating a stronger second half of the year for the home improvement retailer. In contrast, TD Cowen sustained its Hold rating on Lowe's, noting an unexpected gross margin shortfall, but expressing cautious optimism for the overall trajectory of the year. Piper Sandler also confirmed its Overweight rating on Lowe's, emphasizing the company's strong execution and continued progress in its productivity initiatives. However, Loop Capital reiterated a Hold rating on Lowe's, adjusting its forecast for the company's fiscal year 2024 earnings per share upwards.
In the e-commerce sector, Lowe's has joined the trend of increasing online sales, partnering with DoorDash (NASDAQ:DASH) and Shipt to expand same-day delivery options. This move has contributed to its online sales growth and helped counteract a slowdown in larger project sales. BofA Securities and TD Cowen both highlighted the robust comparable sales driven by the professional customer base, anticipating this segment to continue leading the growth.
InvestingPro Insights
Lowe's Companies, Inc. (NYSE: LOW) has demonstrated a robust commitment to shareholder returns, not only with its recent dividend increase but also through its impressive track record. According to InvestingPro Tips, Lowe's has raised its dividend for an extraordinary 40 consecutive years, a testament to its stable financial management and investor-friendly approach. This aligns with the company's latest move to enhance its quarterly cash dividend, further solidifying its reputation as a reliable dividend payer.
InvestingPro Data underlines the financial strength of Lowe's, with a market capitalization of $123.28 billion, showcasing its significant presence in the industry. The company's P/E ratio stands at 17.2, indicating a reasonable valuation given its near-term earnings growth, as Lowe's trades at a low P/E ratio relative to this growth. Furthermore, the dividend yield as of April 2024 is an attractive 2.04%, which is particularly compelling for income-focused investors.
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