Is NYSE:LOW a Good Fit for Dividend Investing?

Our stock screener has spotted LOWE'S COS INC (NYSE:LOW) as a good dividend stock with solid fundamentals. NYSE:LOW shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

A Closer Look at Dividend for NYSE:LOW

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:LOW has been awarded a 7 for its dividend quality:

• LOW's Dividend Yield is rather good when compared to the industry average which is at 3.79. LOW pays more dividend than 80.17% 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 paid a dividend for at least 10 years, which is a reliable track record.
• LOW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• LOW pays out 36.68% of its income as dividend. This is a sustainable payout ratio.

Health Insights: NYSE:LOW

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LOW scores a 5 out of 10:

• An Altman-Z score of 3.72 indicates that LOW is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.72, LOW belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.

Understanding NYSE:LOW's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LOW was assigned a score of 8 for profitability:

• LOW has a Return On Assets of 15.39%. This is amongst the best in the industry. LOW outperforms 93.39% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 28.69%, LOW belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 12.50%.
• The last Return On Invested Capital (28.69%) for LOW is well below the 3 year average (32.86%), which needs to be investigated, but indicates that LOW had better years and this may not be a problem.
• LOW has a better Profit Margin (8.23%) than 85.95% of its industry peers.
• LOW's Profit Margin has improved in the last couple of years.
• The Operating Margin of LOW (12.38%) is better than 89.26% of its industry peers.
• In the last couple of years the Operating Margin of LOW has grown nicely.

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For an up to date full fundamental analysis you can check the fundamental report of LOW

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.