Comments on: Stock Analysis: Lowe’s Companies, Inc. (LOW) * http://dividendsvalue.com/1350/stock-analysis-lowes-companies-inc-low/ Dividend Investing & Value Investing For A Superior Portfolio Mon, 11 Apr 2011 13:45:49 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Dividends4Life http://dividendsvalue.com/1350/stock-analysis-lowes-companies-inc-low/comment-page-1/#comment-2501 Dividends4Life Fri, 25 Jul 2008 22:20:00 +0000 http://dividendsvalue.com/1350/stock-analysis-lowes-companies-inc-low/#comment-2501 Anon: Thanks for bringing these items forward. As for the dividend growth rate, I believe it is correct since the exact dividends were carried to 4 decimals in the formula and were as such:<br/><br/>2000 $0.03<br/>2001 $0.035 (+16.7%)<br/>2002 $0.0375 (+7.1%)<br/>2003 $0.04 (+6.7%)<br/>2004 $0.0525 (+31.25%)<br/><br/>All the extra decimal places happens when a stock splits. I probably should have displayed more precision.<br/><br/>As for the 2003 payout I think you are correct in assuming something is not right. These are not calculated, but are pulled off an S&P report. It appears to be wrong and I did not catch it. When calculated based on dividends/share and EPS, it is 5%, which appears to be in their normal range. I generally prefer to calculate payout % on dollars and not per share amounts. The diluted share count can sometimes be skewed with exotic share incentive plans and aggressive share repurchases.<br/><br/>Some of the other numbers may look out of kilter, since LOW is on a fiscal year. I had not rolled share price, payout % and revenue.<br/><br/>Again, I appreciate you bringing this to my attention.<br/><br/>Best Wishes,<br/>D4L Anon: Thanks for bringing these items forward. As for the dividend growth rate, I believe it is correct since the exact dividends were carried to 4 decimals in the formula and were as such:

2000 $0.03
2001 $0.035 (+16.7%)
2002 $0.0375 (+7.1%)
2003 $0.04 (+6.7%)
2004 $0.0525 (+31.25%)

All the extra decimal places happens when a stock splits. I probably should have displayed more precision.

As for the 2003 payout I think you are correct in assuming something is not right. These are not calculated, but are pulled off an S&P report. It appears to be wrong and I did not catch it. When calculated based on dividends/share and EPS, it is 5%, which appears to be in their normal range. I generally prefer to calculate payout % on dollars and not per share amounts. The diluted share count can sometimes be skewed with exotic share incentive plans and aggressive share repurchases.

Some of the other numbers may look out of kilter, since LOW is on a fiscal year. I had not rolled share price, payout % and revenue.

Again, I appreciate you bringing this to my attention.

Best Wishes,
D4L

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