05-28-2021, 08:14 AM
(05-28-2021, 06:16 AM)fenders53 Wrote: Looks to be well covered. Their payout ratio was conservative. I wouldn't expect future increases like this. LOW competes with HD in every way and they were getting way behind on dividends.
LOW has guided for a 35% payout ratio, and this raise puts the payout ratio at 36% of current estimates of $8.86 in earnings in 2021.
Earnings are forecast to rise another 24% in 2022, so this may not be the last of big increases.
For comparison, HD targets a 55% payout ratio, so it appears that Lowe's is quite safe.