This dividend king could be a no-brainer buy if Kamala Harris beats Donald Trump in November

Presidential elections matter. Candidates usually have competing visions for the country. These visions can create winners in some areas — and losers in others. As a result, cautious investors are watching the election closely.

It’s not too early to start thinking about which stocks could be winners depending on which presidential candidate wins. And there’s a dividend king that could be a no-brainer buy if Kamala Harris beats Donald Trump in November.

Go upstairs, go Lowe’s

Most Americans are probably quite familiar Lowe’s Companies (LOW 0.70%). The company is the second largest home improvement retailer in the world. Its market value is around $140 billion.

Lowe’s operates more than 1,700 home improvement stores throughout the US. It serves people who do high end repair projects. The company also targets professionals, including skilled tradespeople, remodelers and property managers.

Although Lowe’s stock is lagging behind the S&P 500 so far in 2024 it has outperformed the long-term market. For example, Lowe’s has doubled the return of the S&P 500 over the past 10 years.

Lowe’s has also been a favorite for income investors. The company has paid a dividend every quarter since it went public in 1961. Lowe’s has increased its dividend for 51 consecutive years.

Why a Harris win could benefit Lowe’s

In August, Vice President Harris unveiled his plan to lower housing costs. It wants to offer up to $25,000 to first-time home buyers to help with their down payments. First-time home buyers would also receive a $10,000 tax credit. Harris’ plan also includes tax incentives to promote the construction of affordable starter homes and rental housing.

How could this plan help Lowe’s? Primarily, Lowe’s caters to home builders. It even has a strategic alliance with the National Association of Home Builders that offers discounts to members of the organization. Lowe’s should have the opportunity to take advantage of any federal initiative that spurs new home construction.

But Harris’ plan doesn’t just promote building new homes. It should also promote a frenzy of fixing up existing homes, especially those that are attractive to first-time buyers. Again, Lowe’s would likely be a key beneficiary of a wave of home improvement projects.

Of course, a Harris win in November might not be enough. If she is elected as the next president, she will need support in Congress to pass her housing plan.

A good choice regardless of which candidate wins

Lowe’s could be a no-brainer buy if Harris beats Trump. However, the stock could be a good pick regardless of which candidate wins.

In the short term, lower interest rates could provide a catalyst for Lowe’s stock. Federal Reserve Chairman Jerome Powell hinted that interest rate cuts are coming soon. When interest rates go down, mortgage rates usually do too. This boosts home buying – and home improvement projects for existing homeowners looking to move into a new home.

Lowe’s should also have great long-term prospects. The average age of homes in the US is over 40 years. Home improvement projects will be needed for decades to come. And Lowe’s will be there to meet those needs.