TD Cowen resets price target on blue-chip Dividend King

Lowe's Companies has spent decades softly earning 1 of the astir coveted titles successful the investing world: Dividend King.

That means it has raised its dividend for much than 50 consecutive years. Right now, that streak stands astatine 65 years and counting, per 24/7 Wall St.

But Wall Street isn't successful a celebratory mood. TD Cowen conscionable reset its terms people connected the location betterment giant, citing a much cautious near-term outlook.

Here's what investors request to know.

TD Cowen expert Max Rakhlenko lowered his price people connected Lowe's (LOW) to $280, down from $295, according to Investing.com. The steadfast is keeping a “hold” standing connected the stock.

The reason? Lower expectations for some gross and nett margins heading into fiscal 2026.

The steadfast acknowledged that Lowe's fourth-quarter results and full-year guidance came successful mostly arsenic expected. Nothing was dramatically amended oregon worse than statement estimates.

Still, Rakhlenko shaved his earnings-per-share forecast for the year, which pulled the people down.

Related: Mortgage rates tick little arsenic the Fed trims cardinal rate

One happening TD Cowen made clear: The concern thesis hasn't changed. TD is inactive watching and waiting, specifically for the do-it-yourself lawsuit to amusement meaningful signs of betterment earlier revisiting its rating.

That's the crux of the issue.

Big-ticket discretionary spending by DIY customers has been stuck successful neutral for the past 2 years.

Consumers person been reluctant to driblet tens of thousands of dollars connected room renovations oregon caller flooring erstwhile owe rates are sitting adjacent 7% and economical uncertainty is elevated.

According to information from Fiscal.ai, Lowe’s annual dividend per stock has risen from $0.12 successful 2006 to $4.80 successful 2026, which indicates a guardant output of astir 2%.

Analysts forecast Lowe’s to amended its free currency travel from $7.7 billion successful fiscal 2026 (ended successful January) to $10.35 cardinal successful fiscal 2031.

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A widening currency travel basal should alteration the blue-chip dividend banal to rise the yearly dividend to $6.11 per stock successful fiscal 2031.

For income investors, Lowe's way grounds arsenic a Dividend King remains 1 of the much compelling semipermanent arguments for owning the stock.

• Annual dividend per share: $4.80

• Quarterly dividend per share: $1.20

• Dividend yield: Approx. 1.90%

• Dividend payout ratio: About 30% of escaped currency flow

• Consecutive years of dividend increases: 65 years

• 20-year dividend maturation rate: Approx. 20.2% annually