Lowe's Outshines Home Depot in Dividend Growth and Sales Momentum

Home Depot and Lowe's have been dominant forces in the US home improvement space for decades. Both companies have raised their dividends for an impressive 17 straight years, with Home Depot having paused increases between 2006 and 2010.

Lowe's has consistently hiked its payout each year, with a recent increase of over 4.2%, significantly more than Home Depot's 1.2% rise.

While income investors might favor Home Depot due to its higher dividend yield of 2.7%, Lowe's stock may offer higher overall growth potential. The company has made significant efforts in recent years to improve supply chain efficiency, store layouts, and inventory management, resulting in higher net sales growth.

In the first quarter of 2026, Lowe's net sales rose by 11%, outpacing Home Depot's 5% increase. Analysts expect this trend to continue in Q2, forecasting a 9% increase in net sales for Lowe's compared to Home Depot's 4%.