Is Lowe's a Dividend Beast, Backslider, or Bust?

By Asit Sharma – Nov 7, 2013 at 1:01PM

NYSE: HD

Home Depot

Market Cap

$332B

Today's Change

(0.94%) $3.11

Current Price

$335.09

Price as of April 26, 2024, 4:00 p.m. ET

The No. 2 global hardware retailer has paid a dividend every quarter since going public in 1961, but the housing market still feels vulnerable. Should dividend investors buy Lowe's or wait on the sidelines?

Image of Lowe's Valspar paints courtesy Charles & Hudson, under Creative Commons License

Lowe's (LOW -0.04%) holds one of the longest dividend streaks in the S&P 500, having increased its payout annually for 51 years running. The company is posting decent profits in 2013, and Lowe's stock reflects investors' confidence -- shares are up almost 54% this year, roughly double the S&P 500.

If you're bullish on Lowe's, and are interested in collecting the company's steady dividend, is now a good time to enter into a position? In the accompanying video, part of a series on dividends, Fool contributor Asit Sharma discusses Lowe's current state, compares it to competitor Home Depot, and identifies whether the company is a dividend beast, backslider, or bust.

Fool contributor Asit Sharma has no position in any stocks mentioned. The Motley Fool recommends Home Depot. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.