Dividend Aristocrat Overview: Lowe’s Companies, Inc.

About Lowe’s

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.

Lowe's has increased annual dividends each year since 1984. Photo courtesy Mike Mozart/JeepersMedia via flickr.com.

Lowe’s has increased dividends each year since 1984.
Photo courtesy Mike Mozart/JeepersMedia via flickr.com.

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 Dividends

Lowe’s has compounded dividends by more than 20% over the last 5 years.

Lowe’s has paid dividends every year since 1961 and grown them every year since 1984. Lowe’s stock goes ex-dividend in January, April, July and October, with increases announced in May for the July payment. In May 2016, Lowe’s announced a 25.0% increase to its payout to an annual rate of $1.40 per share.

Lowe’s has an outstanding dividend growth record, with double digit percentage increases from year to year, except for one year during the worst of the recession in 2008 – 2009. Over the last 5 years, Lowe’s has compounded its dividend payout by 20.30% annually and over the last decade, by 22.92% annually. Over the last 25 years, the company has compounded dividends at an average rate of 18.79%. These long-term dividend growth rates are some of the best among all the Dividend Aristocrats.

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. A single share purchased at the beginning of 1983 would now be 53.3 shares.

Over the 5 years ending on December 31, 2015, Lowe’s stock appreciated at an annualized rate of 26.98%, from a split-adjusted $22.65 to $74.77. This dramatically outperformed the 10.20% compounded return of the S&P 500 index over the same period.

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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