10 Best GARP Stocks That Pay Dividends

6. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 60

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based home improvement company. It provides a broad selection of related products and services, including hardware, tools, appliances, building materials, paint, plumbing supplies, and garden equipment. In January, the company announced that project nominations are now open for Lowe’s Hometowns, a five-year initiative backed by a $100 million commitment to community revitalization. This year, the company plans to invest $10 million to fund 100 renovation projects and support an additional 1,700 projects selected by its employees. In addition, Lowe’s has committed $2 million to assist with relief and recovery efforts for the Southern California wildfires, reinforcing its dedication to supporting communities in times of crisis.

Lowe’s Companies, Inc. (NYSE:LOW) is a strong dividend payer. Over the past five years, the company has increased its dividend at an average annual rate of more than 16%. Additionally, the company has maintained a steady track record of dividend growth for 59 consecutive years, making it one of the best GARP stocks on our list. The company pays a quarterly dividend of $1.15 per share and has a dividend yield of 1.83%, as of February 14.

Lowe’s Companies, Inc. (NYSE:LOW) benefits from three major factors that support its business. These include rising home prices, personal income growth outpacing inflation, and the fact that the average age of homes in the U.S. has reached an all-time high. These trends are expected to sustain strong demand for the company’s products, as homeowners are likely to continue investing in home renovations and repairs over time.