Why NYSE:LOW provides a good dividend, while having solid fundamentals.

Discover LOWE'S COS INC (NYSE:LOW)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:LOW showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

How do we evaluate the Dividend for NYSE:LOW?

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:LOW was assigned a score of 7 for dividend:

• LOW's Dividend Yield is rather good when compared to the industry average which is at 3.44. LOW pays more dividend than 81.75% of the companies in the same industry.
• On average, the dividend of LOW grows each year by 19.28%, which is quite nice.
• LOW has been paying a dividend for at least 10 years, so it has a reliable track record.
• LOW has not decreased their dividend for at least 10 years, which is a reliable track record.
• 35.14% of the earnings are spent on dividend by LOW. This is a low number and sustainable payout ratio.

Assessing Health for NYSE:LOW

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:LOW, the assigned 5 reflects its health status:

• An Altman-Z score of 3.65 indicates that LOW is not in any danger for bankruptcy at the moment.
• LOW has a better Altman-Z score (3.65) than 77.78% of its industry peers.
• LOW's Debt to FCF ratio of 4.31 is fine compared to the rest of the industry. LOW outperforms 60.32% of its industry peers.

Profitability Examination for NYSE:LOW

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LOW has achieved a 8:

• The Return On Assets of LOW (15.88%) is better than 93.65% of its industry peers.
• LOW's Return On Invested Capital of 31.08% is amongst the best of the industry. LOW outperforms 97.62% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 13.06%.
• LOW has a better Profit Margin (8.44%) than 86.51% of its industry peers.
• LOW's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 12.79%, LOW belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
• In the last couple of years the Operating Margin of LOW has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of LOW contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.