What Lowe’s actually does

Lowe’s runs home improvement stores across the United States, selling tools, appliances, building materials, paint and garden products. It serves do-it-yourself customers and, increasingly, professional contractors. It was founded in 1921 in North Carolina.

How the business makes money

It earns a margin on products sold in stores and online, plus installation and credit services. Sales rise with home sales, renovation activity and the age of the housing stock, and fall when people postpone big projects.

The dividend story

Lowe’s is a Dividend King, with more than 60 years of annual increases. It pays quarterly and has also bought back a lot of stock. The company focuses on raising the dividend steadily as profits grow.

What to keep an eye on

  • Housing market. Slow home sales mean fewer projects.
  • Interest rates. Higher rates discourage big renovations.
  • Competition. Home Depot is a bigger rival.
  • Consumer spending. Big-ticket purchases are postponed first.

Quick take

Lowe’s is a cyclical retailer with an extraordinary dividend record, closely tied to housing.