Lowe’s dividend
Lowe’s paid $2,636 million in dividends in the year ended January 2026, against $7,651 million of free cash flow. Buybacks were only $211 million, leaving $4,804 million before acquisitions and other movements.
How much does Lowe’s pay per share?
The base dividend rises from $5.00 per share to $5.40. The latest declared quarterly rate supports the first year, while the five-year record of increases supports modest growth thereafter. The bear case freezes the annualized rate at $5.00; the bull case reaches $5.62 as cash generation improves. Free cash flow covered dividends comfortably in fiscal 2025.
| Jan 2026 | Jan 2025 | Feb 2024 | Feb 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Revenue | 86,286 | 83,674 | 86,377 | 92,010 | 90,348 |
| Revenue growth (calculated) | 3.1% | -3.1% | -6.1% | 1.8% | 7.2% |
| Net income | 6,654 | 6,957 | 7,726 | ||
| Dividend per share | 4.75 | 4.55 | 4.35 | 3.95 | 3.00 |
What this means. Lowe’s calls the dollar amount left after direct costs “gross margin,” but this table calls it “gross profit” and uses “gross margin” for the percentage of sales left.
Is Lowe’s dividend covered by its cash?
The position changed in the year ended January 2026. Free cash flow was $7,651 million and dividends were $2,636 million. Buybacks were only $211 million, leaving $4,804 million before acquisitions and other movements. Acquisition spending reached $10,088 million, so Lowe’s issued $6,974 million of debt and repaid $2,587 million. Net debt rose to $38,569 million from $33,354 million.
| Jan 2026 | Jan 2025 | Feb 2024 | Feb 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 7,651 | 7,698 | 6,176 | ||
| − Dividends paid | 2,636 | 2,566 | 2,531 | 2,370 | 1,984 |
| − Share buybacks | 211 | 4,053 | 6,138 | 14,124 | 13,012 |
| = Free cash flow not paid out | 4,804 | 1,079 | |||
| − Acquisitions | 10,088 | 0 | 0 | ||
| + Debt issued | 6,974 | 0 | 2,983 |
What could change Lowe’s dividend?
The bull case would gain weight if housing turnover and big-ticket projects lift transactions during 2027 and 2028, while Pro service gains make FBM and ADG profitable. Faster cash generation, progress toward the mid-2027 leverage target and renewed buybacks would then support higher earnings and a wider multiple.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 10,602 (9,882 / 11,092) | 11,328 (9,660 / 12,200) | 11,880 (9,964 / 13,125) |
| Shares (millions) | 560 (562 / 555) | 556 (562 / 546) | 550 (562 / 537) |
| Dividends per share | 5.00 (5.00 / 5.00) | 5.20 (5.00 / 5.30) | 5.40 (5.00 / 5.62) |
| Enterprise value to normal operating profit | 14.50 (12.50 / 16.00) | 15.00 (12.00 / 17.00) | 15.50 (11.50 / 18.00) |
| Net debt | 30,978 (31,496 / 31,347) | 27,612 (29,036 / 27,921) | 24,352 (26,436 / 24,306) |
What is Lowe’s dividend yield today?
Free cash flow offers another lens. Its 6.9% yield compares favourably with a 5.22% ten-year US government-bond yield, but Lowe’s definition subtracts ordinary capital spending, not the purchase price of an entire company. Inventory also absorbs cash before the spring selling season. The 2.5% dividend yield is only one use of that cash, while the 6.7% real yield depends on how its adjustment is defined.