■ Analysis · August 16, 2026
Home Depot vs. Lowe's: Dividend Growth and Valuation Compared
Home Depot and Lowe's have both raised dividends for 17 straight years. Lowe's offers faster dividend growth and a lower P/E, while Home Depot has a higher yield.
Dividend Histories and Current Yields
Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) have each increased their dividends for 17 consecutive years. Home Depot's annual dividend stands at $9.32 per share, yielding 2.7%. Lowe's pays $5.00 per share annually, for a yield of 2.2%. However, Lowe's most recent dividend increase was 4.2%, compared to Home Depot's 1.2%.
Both companies have long track records of rewarding shareholders. Home Depot's dividend history shows a pause between 2006 and 2010, while Lowe's has maintained its streak for decades. For a detailed look at potential returns, see the Home Depot dividend calculator and the Lowe's dividend calculator.
Recent Performance and Growth Outlook
In the first quarter of 2026, Lowe's reported net sales growth of 11%, outpacing Home Depot's 5%. Analysts expect this trend to continue in Q2, with Lowe's projected to grow net sales by 9% versus 4% for Home Depot. Lowe's has focused on supply chain efficiency, store layouts, and inventory management, which appear to be driving its stronger performance.
Over the past five years, Lowe's stock has delivered higher total returns than Home Depot's. This is partly due to its faster earnings growth and a more attractive valuation.
Valuation Comparison
Currently, Lowe's trades at a price-to-earnings (P/E) ratio of 18, while Home Depot's P/E is 24. This means investors are paying a lower multiple for Lowe's, which also has higher expected growth. The combination of faster dividend growth, higher sales growth, and a lower P/E suggests that Lowe's may offer better value at this time.
Both companies operate in a mature U.S. market, limiting their rapid expansion prospects. They are often viewed as income stocks suitable for wealth preservation rather than high growth.
What it means for income investors
For income-focused investors, Home Depot offers a higher current yield, but Lowe's provides faster dividend growth and a more attractive valuation. The choice depends on whether one prioritizes immediate income or potential for future increases and capital appreciation.
Reporting based on: Yahoo Finance. Figures verified against market data where available.