Lowe’s increased its dividend despite weak housing conditions, defying Wall Street expectations of a potential cut.
Lowe’s raised its quarterly dividend to $1.25 per share on May 29, 2026, up from $1.20, despite a challenging housing market. The company cited strong free cash flow coverage of 2.9x as support for the increase.
The move contrasts with Wall Street predictions of a dividend cut due to rising rates and sluggish DIY demand. Lowe’s also reduced buybacks by 95% to $211 million, prioritizing dividend growth. The payout has risen from $0.12 to $4.70 per share over 26 years.
The dividend will be paid on August 5, 2026, signaling board confidence in long-term cash flow stability despite near-term headwinds.