Dividend Aristocrat Overview: Lowe’s Companies, Inc.

Photo: Flickr.com/Mike Mozart

About Lowe’s Companies

Originally started as a small hardware store in North Carolina in 1946, Lowe’s now operates over 1800 stores across the United States, Canada, and Mexico and employs 260,000 people.  It is the 2nd largest home improvement retailer in the world.

In addition to major name brands of home improvement products, Lowe’s also markets products under several private labels including Kobalt® hand tools, Blue Hawk® underlayments, Harbor Breeze® ceiling fans, Sta-Green® Lawn Care products, and Master Forge® grills.

The company is a member of the S&P 500 index and trades under the ticker symbol LOW.

Lowe’s Dividend and Stock Split History

Lowe’s has paid dividends every year since 1961 and grown them every year since 1984.  The company usually announces annual dividend increases in May with the stock going ex-dividend in July.

Lowe’s has compounded its payout at an average rate of 20.4% over the last 5 years and 19.3% over the last 10 years.

Since coming public on October 10, 1961 Lowe’s has split 12 times with 2 for 1 splits in April 1966, November 1969, June 1992, April 1994, June 1998, June 2001, and June 2006.  The company also split the stock 3 for 2 in November 1971, June 1976, and November 1981; 5 for 3 in April 1983; and 4 for 3 in July 1972.

 

Lowe’s Direct Purchase and Dividend Reinvestment Plans

Lowe’s has both direct purchase and dividend reinvestment plans. Investors interested in participating in either of these plans can find information at Computershare’s Investment Plan site.  The minimum initial investment amount for new investors is $250 and $25 for recurring investments through direct debit.  The minimum for additional investments is $25.

The plans have both purchase and sales fees.  There is a $5 initial setup fee. The transaction fee for the direct purchase plan is 5% of the investment, up to $2.50, along with a 5 cent per share brokerage fee.  Lowe’s pays the fees for purchases made by reinvesting dividends.

When selling shares, an investor will pay 12 cents per share sold along with a transaction fee of either $15 or $25 depending on the type of sale (i.e., market order, batch order or day limit order).  Other fees may apply as well.

Helpful Links

Lowe’s Investor Relations Website

Current quote and financial summary for Lowe’s (finviz.com)

Information on the direct purchase and dividend reinvestment plans for Lowe’s

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