Forget Home Depot: Buy This Stock for Dividend Growth Instead
Home Depot (NYSE: HD) has been a favorite on Wall Street through just about every stock market environment. That's because the leading home improvement retailer earns its premium by delivering steady market share gains, along with impressive profitability, in its fragmented industry.
Yet, there are better options available for income investors who might be disappointed by Home Depot's expensive price and its relatively short track record for dividend raises. Let's look at some reasons to prefer its main competitor, Lowe's (NYSE: LOW), if you're seeking a balance between growth and income in the home improvement retailing industry.
There's a significant gap between the two companies when it comes to growth, and it's no surprise that the industry leader comes out ahead on this metric. Home Depot's comparable-store sales are on track to decline by between 3% and 4% in fiscal 2023, management confirmed in their recent earnings update. Lowe's, meanwhile, reduced its outlook and is now expecting a 5% comps drop on the year.
Source Fool.com
