Lowe's Companies (LOW) will raise its quarterly dividend by a whopping 33.3 percent to 80 cents per share in 2021. This comes after a late 9.1 percent dividend hike to 60 cents per share announced in the third quarter of 2020. In 2019 Dividend Aristocrat Lowe's hiked the dividend by 14.6 percent. This new dividend hike just announced makes 2021 the 60th consecutive year of dividend increases by the home improvement retailer.
The next dividend is payable August 4, 2021, to shareholders of record as of July 21, 2021. A new annualized dividend rate of $3.20 per share yields 1.6% at a stock price of $193.77.
Lowe's has declared a cash dividend every quarter since going public in 1961 and will now pay approximately $2.3 billion in dividends to shareholders on a annual basis.
For Lowe's the 9.1 percent dividend hike last year was the smallest in many years, just like other US companies and especially many Dividend Aristocrats that slowed dividend growth because of COVID-19. Lowe's had been raising the dividend by double digits every year since 2010 and is one of the Dividend Aristocrats with the highest average dividend growth rate based on the last five years. The 5 year CAGR for Lowe's, a dividend hike star in the last couple of years, now jumps from 16.5 percent to 18 percent annually if we include this new increase announced Today.
Lowe's Companies, Inc. is a home improvement retailer. The company operates home improvement and hardware stores in The United States, Canada and Mexico. The Canadian Stores include RONA Inc., acquired by Lowe's in 2016. The company's customers include homeowners, renters, and professional customers. Lowe's was founded in 1946, incorporated in North Carolina in 1952 and has declared a cash dividend every quarter since going public in 1961.