12 Best Dividend Kings to Buy For Safe Dividend Growth

1. Lowe’s Companies, Inc. (NYSE:LOW)

5-Year Average Annual Dividend Growth Rate: 16.39%

Lowe’s Companies, Inc. (NYSE:LOW) is an American home improvement company, based in North Carolina. The company holds a dominant position in the North American home improvement retail market, offering a wide range of products and supported by an extensive store network. Its well-developed distribution system serves both do-it-yourself (DIY) homeowners and professional contractors, while the integration of digital and physical channels enhances the overall customer experience.

In the fourth quarter of 2024, Lowe’s Companies, Inc. (NYSE:LOW) reported steady earnings, with revenues reaching $18.55 billion. Although revenue declined slightly by 0.3% year-over-year, it exceeded earnings expectations by $260 million. Comparable sales grew by 0.2%, driven by strong performance in the Pro and digital segments, with a successful holiday season and recovery efforts post-hurricane also contributing to the growth.

At the end of 2024, Lowe’s Companies, Inc. (NYSE:LOW) cash and cash equivalents totaled $1.8 billion, up from $921 million the previous year. The company continued to generate strong cash flow, with operating cash flow for the fiscal year 2024 rising to $9.7 billion from $8.1 billion in 2023. Throughout the year, it returned $6.5 billion to shareholders through dividends and share repurchases.

Lowe’s Companies, Inc. (NYSE:LOW) pays a quarterly dividend of $1.15 per share and has a dividend yield of 2.06%, as of April 4. Its dividend growth streak spans 59 years, with a five-year average annual dividend growth rate of 16.39%.

Overall, Lowe’s Companies, Inc. (NYSE:LOW) ranks first on our list of the best dividend kings for safe dividend growth. While we acknowledge the potential of LOW as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LOW but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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