10 Magnificent Dividend Growth Stocks to Invest In

1. Lowe’s Companies, Inc. (NYSE:LOW)

5-Year Average Dividend Growth Rate: 16.39%

Lowe’s Companies, Inc. (NYSE:LOW) is an American home improvement company, based in North Carolina. The company benefits from three major factors driving its business: rising home prices, personal income growth outpacing inflation, and the record-high average age of homes in the US. These trends are expected to sustain demand for its products as homeowners continue to focus on home improvements and repairs.

In the fourth quarter of 2024, Lowe’s Companies, Inc. (NYSE:LOW) reported revenue of $18.55 billion, reflecting a slight decline of 0.2% from the previous year. Comparable sales inched up by 0.2%, supported by strong Pro and online sales, a robust holiday season, and post-hurricane rebuilding efforts. However, growth was partially offset by short-term pressures on discretionary spending in the DIY segment.

Lowe’s Companies, Inc. (NYSE:LOW), one of the best dividend aristocrat stocks, offers a quarterly dividend of $1.15 per share and has a dividend yield of 1.90%, as of March 9. The company maintained a solid cash position in the latest quarter, ending Q4 with nearly $1.8 billion in cash and cash equivalents, up from $921 million a year earlier. For fiscal 2024, operating cash flow reached $9.7 billion, an increase from $8.1 billion in the prior year. The company also returned $6.5 billion to shareholders through dividends and share repurchases. It has been rewarding shareholders with growing dividends consistently for the past 59 years.

Overall, Lowe’s Companies, Inc. (NYSE:LOW) ranks first on our list of the best dividend aristocrat stocks. While we acknowledge the potential for LOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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