The home improvement retailer and dividend aristocrat Lowe’s (LOW) reported quarterly earnings of $3.75 per share, beating the consensus estimate of $2.95 a share. Lowe’s profits soared 68.7% to $2.83 billion, up from $1.68 billion.
Net sales rose 30% to $27.3 billion vs. $24.27 billion expected. Lowe’s online sales soared 135% as COVID-19 pushed more customers to digital channels.
Lowe’s is trading up 30% year-to-date.
Lowe’s Cos. current dividend yield of 1.39% is -17% below its 5-year average. The 5-year average dividend yield is 1.68% (see red-line in the chart). This indicates the stock looks overvalued today.