Lowe's Edges Out Home Depot as Smarter Buy Amid Higher Growth Prospects

Home Depot and Lowe's are two retail stocks that have dominated the home improvement space in the U.S. for decades, offering investors significant dividend returns.

Lowe's has raised its dividend every year for several decades, while Home Depot has done so for 17 consecutive years, having paused increases between 2006 and 2010.

Investors may favor Home Depot's higher dividend yield of 2.7%, but Lowe's stock offers higher overall returns, particularly in the last five years.

Lowe's has worked to improve its supply chain efficiency, store layouts, and inventory management, resulting in higher net sales growth compared to Home Depot.

Analysts expect this trend to continue, with a 9% increase in Lowe's net sales forecasted for Q2, surpassing the 4% expected for Home Depot.