Value Investing with Sven Carlin, Ph.D. on $LOW (Nov 7, 2026)
LOW's 5.5% dividend yield plus some inflation protection; from current levels its distributions, potential growth and valuation imply a 9% long-term return, called excellent. Higher rates would make it more dangerous, lower rates would lift the price; owning it for that potential 9% long-term return is reasonable.
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Low stock, we discussed it a month ago, dividend yield 5.5%, good position, good business . See how a 5.5% return plus some inflation protection fits into your portfolio. We have calculated the distributions, potential future growth, and valuation.
From these levels, you can guess what this is. A long-term return of 9%, which is an excellent return. If interest rates rise, yes, it becomes more dangerous. If interest rates fall, the stock price will rise.
That's risk and reward, but if you like owning something like this, there's nothing wrong with a potential long-term 9% return.