Why NYSE:LOW is a Top Pick for Dividend Investors.

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.

Dividend Examination for NYSE:LOW

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:LOW has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.39, LOW pays a better dividend. On top of this LOW pays more dividend than 81.51% of the companies listed in the same industry.
• The dividend of LOW is nicely growing with an annual growth rate of 19.28%!
• LOW has paid a dividend for at least 10 years, which is a reliable track record.
• LOW has not decreased their dividend for at least 10 years, which is a reliable track record.
• 37.27% of the earnings are spent on dividend by LOW. This is a low number and sustainable payout ratio.

Health Assessment of NYSE:LOW

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:LOW, the assigned 5 for health provides valuable insights:

• LOW has an Altman-Z score of 3.70. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of LOW (3.70) is better than 78.15% of its industry peers.
• The Debt to FCF ratio of LOW (4.54) is better than 63.87% of its industry peers.

What does the Profitability looks like for NYSE:LOW

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:

• Looking at the Return On Assets, with a value of 15.28%, LOW belongs to the top of the industry, outperforming 92.44% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 29.80%, LOW belongs to the best of the industry, outperforming 95.80% 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 12.30%.
• With an excellent Profit Margin value of 8.17%, LOW belongs to the best of the industry, outperforming 87.39% of the companies in the same industry.
• In the last couple of years the Profit Margin of LOW has grown nicely.
• With an excellent Operating Margin value of 12.24%, LOW belongs to the best of the industry, outperforming 89.08% of the companies in the same industry.
• LOW's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.