Markets rarely stay calm for long. That's one reason I often turn to Dividend Kings to generate long-term income. Lowe’s Companies Inc. (LOW) is a stock that could fit well in a long-term income portfolio due to its dividend growth, writes Rick Orford, author at Barchart.
Dividend Kings are companies that have increased their dividends for at least 50 consecutive years. They have a track record that often signals quality while balancing shareholder rewards and reinvestment. The result? These companies keep growing and continue attracting investors over time.
Lowe’s is one of the largest home improvement retailers serving professionals and DIYers. It sells a wide range of products used in everything from small home projects to larger building and renovation jobs. And with new stores opening regularly, its expanded reach could support more growth.
Meanwhile, Lowe’s has increased its dividends for more than 50 consecutive years. It currently pays a forward annual dividend of $4.80. That translates to a yield of around 2%.
While that might not sound like a lot, over the past five years, Lowe's has grown the dividend by just over 106%. It has done so while maintaining a payout ratio of 39%, which leaves ample room for continued growth.
