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Lowe's dividend is safer and growing faster than Home Depot's amid a slow housing market.

Market News
14 Sep 2026
24/7 Wall Street
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Lowe's dividend is safer and growing faster than Home Depot's amid a slow housing market.

With existing home sales at historic lows, both Home Depot and Lowe's face challenges as renovations decline. Home Depot's dividend is covered but with a thinner cash flow cushion, while Lowe's shows a stronger free cash flow yield and wider dividend coverage. Home Depot leans more on professional contractors, which helps in a slow market, but Lowe's has a longer track record of dividend increases and a lower payout ratio, making its dividend more defensible for income investors. If mortgage rates drop and housing activity picks up, Home Depot's focus on pros could outperform, but for now, Lowe's is the safer income choice.

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