10 Best Dividend Kings Stocks to Invest in Now

7. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 60

Lowe’s Companies, Inc. (NYSE:LOW) is an American home improvement retail company. It is one of the best dividend kings on our list as the company has been growing its payouts for 59 consecutive years. The company’s quarterly dividend currently sits at $1.15 per share and has a dividend yield of 1.85%, as of January 13.

Analysts suggest that the steady demand for construction, repair, and remodeling supplies provides a solid foundation for continued growth, provided Lowe’s Companies, Inc. (NYSE:LOW) remains focused on customer needs. However, the company is currently feeling the impact of a slow economy. In the latest quarter, it reported $20.17 billion in revenue, marking a nearly 2% decline from the same period last year. Despite this, earnings slightly surpassed expectations, even when excluding storm-related activities. The results were bolstered by growth in Pro sales, strong online performance, and smaller outdoor DIY projects.

Madison Investments also highlighted this in its Q3 2024 investor letter. Here is what the firm has to say:

“In the third quarter, the top five individual contributors to performance relative to the benchmark were Parker-Hannifin Corporation, Fiserv, Lowe’s Companies, Inc. (NYSE:LOW), Brookfield Corporation, and Progressive Corporation. Despite operating in very different sectors, Lowe’s Companies and Brookfield Corporation are both expected to benefit from the economic activity spurred on by declining interest rates. The Federal Reserve’s decision to lower interest rates sparked investor enthusiasm for both companies during the quarter, even as their sales and profits continue to moderate. For Lowe’s, sales remained weak in the latest quarter as most measures of the housing market remain sluggish. However, if interest rates come down and mortgages become more affordable, activity should return to the housing market which will boost Lowe’s business.”

Insider Monkey’s database of Q3 2024 indicated that 60 hedge funds owned stakes in Lowe’s Companies, Inc. (NYSE:LOW), compared with 62 in the preceding quarter. The overall value of these stakes is more than $2.2 billion.