Home Depot and Lowe's Have Both Raised Their Dividends for 17 Straight Years. Which Stock Is the Smarter Buy Heading Into Earnings?

Home Depot and Lowe's have both increased their dividends for 17 consecutive years, making them popular choices for income investors seeking stable returns. While Home Depot offers a higher dividend yield (2.7% vs. Lowe's 2.2%), Lowe's has recently raised its dividend by over 4.2%, more than double Home Depot's 1.2% increase. Moreover, Lowe's net sales growth has outpaced Home Depot's in recent years, with an 11% increase in the first quarter of 2026 compared to Home Depot's 5%.

Analysts forecast a 9% net sales growth for Lowe's in Q2, higher than the 4% expected for Home Depot. Additionally, Lowe's trades at a lower P/E ratio (18) compared to Home Depot's 24, indicating faster growth at a lower cost. While both stocks are likely suitable for wealth preservation, Lowe's appears to be the smarter buy currently, offering higher growth potential and an improving dividend.

However, neither stock is ideal for rapid growth investors, as they are both established players in the saturated U.S. market.