Lowe’s Raises Quarterly Dividend 4.2% to $1.25

Lowe’s Companies raised its quarterly dividend 4.2% to $1.25 a share from $1.20. The shares traded ex-dividend on July 22, 2026, and the new rate puts the annual dividend at $5.00 a share.

Why the dividend changed

Lowe’s described the increase as an expression of confidence in its business trajectory and disciplined approach to capital allocation. Chairman and Chief Executive Marvin Ellison said the higher payment reflected the board’s confidence in the company’s progress, its capital-allocation strategy and its commitment to sustainable shareholder value. He also cited investment in the retailer’s Total Home strategy and momentum across its strategic initiatives. Lowe’s dividend announcement

The latest operating results show why the board could raise the payment despite an uneven home-improvement market. Lowe’s reported second-quarter sales of $26.0 billion, up from $24.0 billion a year earlier, while comparable sales increased 0.2%. Pro, home-services and online sales provided the growth, offset partly by persistent pressure on discretionary do-it-yourself spending. Ellison said those businesses produced a fifth consecutive quarter of positive comparable sales. Lowe’s second-quarter results

The company nevertheless narrowed its full-year outlook. Lowe’s now expects sales of $92.0 billion, flat comparable sales and adjusted diluted earnings of approximately $12.25. The previous comparable-sales range ran from flat to growth of 2%. That revision makes cash generation and spending discipline more important to sustaining dividend growth while demand for larger discretionary projects remains soft.

Lowe’s generated approximately $7.0 billion of operating cash flow during the first half and spent $1.1 billion on capital expenditures. It also continued repaying debt while integrating Foundation Building Materials and Artisan Design Group, acquisitions intended to expand its reach with larger professional customers. Lowe’s second-quarter Form 10-Q

Dividend track record

The payment history shows a regular step-up pattern. Lowe’s paid $1.15 a share on the October 23, 2024 ex-dividend date and maintained that rate through April 23, 2025. The rate increased to $1.20 on July 23, 2025, remained there through April 22, 2026, and rose to $1.25 on July 22, 2026.

Annual distributions climbed from $2.25 a share in 2020 to $2.80 in 2021, an increase of 24.4%. They then rose 32.1% to $3.70 in 2022 and 16.2% to $4.30 in 2023. Growth moderated after that: the total increased 4.7% to $4.50 in 2024 and 4.4% to $4.70 in 2025.

The sequence indicates that Lowe’s has shifted from unusually large increases earlier in the period to smaller annual raises. The latest action extends the company’s dividend-growth streak to 30 years. Its last annual cut was in 1995.

Is the dividend covered?

The dividend consumes 41% of earnings. That leaves more than half of earnings outside the distribution for capital spending, acquisitions, debt service, repurchases and other corporate needs. The ratio indicates a meaningful earnings cushion, although coverage can weaken if earnings fall.

SmarterDividends rates the dividend A with a safety score of 90. That falls in the “very safe” range of 80-100 and reflects strong current coverage and a long record of increases. The grade describes the present financial buffer rather than guaranteeing future payments.

Yield and valuation

At a share price of $189.21, Lowe’s has a forward yield of 2.61%. That is slightly below the Consumer Cyclical sector median forward yield of 2.66%, so the stock’s income rate is close to, but lower than, the sector benchmark.

SmarterDividends estimates fair value at $200.93 and classifies the shares as fairly valued. The valuation assessment places the market price near the estimate rather than at a large discount or premium.

What to watch

The next scheduled ex-dividend date is October 21, 2026. Investors must own shares before that date under the applicable settlement rules to qualify for the next distribution.

Lowe’s lists its third-quarter earnings call tentatively for November 18, 2026, followed by an analyst and investor conference on December 9, 2026. The principal operating markers are discretionary DIY demand, continued growth in Pro and home services, integration of Foundation Building Materials and Artisan Design Group, and performance against the updated full-year guidance. Lowe’s events calendar