11 Best Retail Dividend Stocks to Buy

5. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 70

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based home improvement company that has operations in over 1,700 locations across the US. The company aims to fulfill its customer needs, and for that, it is using its Total Home strategy, which would offer services for both DIY and Pro customers. In addition, it is also working to enhance its market position. Lowe’s plans to boost its digital presence while streamlining supply chain operations. It also intends to engage effectively with its customers through digital channels.

Lowe’s Companies, Inc. (NYSE:LOW) reported stable earnings in the fourth quarter of 2024, with revenues coming in at $18.55 billion. Though the revenue fell slightly by 0.3% on a YoY basis, it managed to beat earnings’ estimates by $260 million. Moreover, comparable sales grew by 0.2% due to strong performance in the Pro and digital segments. A successful holiday season and rebuilding efforts following the hurricane also contributed to this growth.

Lowe’s Companies, Inc. (NYSE:LOW)’s cash and cash equivalents came in at $1.8 billion at the end of 2024, up from $921 million in the previous year. The company’s cash generation also remained strong as its operating cash flow for FY24 grew to $9.7 billion in FY24 from $8.1 billion in 2023. Throughout the year, the company returned $6.5 billion to shareholders in dividends and share repurchases.

On March 21, Lowe’s Companies, Inc. (NYSE:LOW) declared a quarterly dividend of $1.15 per share, which fell in line with its previous dividend. Overall, the company has raised its payouts for 59 consecutive years, which makes LOW one of the best dividend stocks in the retail sector. As of March 29, the stock has a dividend yield of 2.01%.