Lowe’s (LOW) Holds Steady While Home Depot Stumbles, Stifel Says

Core Insights - Lowe's Companies, Inc. is recognized as a strong investment option, particularly in the context of dividend stocks, and is included among the 15 Blue Chip Dividend Stocks for passive income portfolios [1] - Stifel raised its price target for Lowe's from $230 to $250 while maintaining a Hold rating, indicating a positive outlook despite softer demand compared to Home Depot [2] - The company reported third-quarter earnings with revenue of $20.8 billion, reflecting over 3% growth year-over-year, and expects FY25 sales to reach $86 billion [3] Financial Performance - Lowe's reported third-quarter revenue of $20.8 billion, which is a growth of slightly over 3% compared to the same period last year [3] - The company returned $673 million to shareholders through dividends and invested $8.8 billion in the acquisition of FBM [3] - For FY25, Lowe's anticipates sales of $86 billion, an increase from the previous guidance of $84.5 billion to $85.5 billion [3] Dividend Policy - Lowe's has a strong dividend policy, having raised its dividends for 60 consecutive years, earning the title of Dividend King [4] - The company's payout ratio stands at 38%, indicating dividend safety and supporting a five-year average annual dividend growth of 16% [4]