Presidential elections matter. Candidates usually have competing visions for the country. Those visions can create winners in some areas -- and losers in others. As a result, prudent investors watch elections closely.

It isn't too soon to begin thinking about which stocks could be winners depending on which presidential candidate wins. And there's one Dividend King that could be a no-brainer buy if Kamala Harris beats Donald Trump in November.

Go high, go Lowe's

Most Americans are probably quite familiar with Lowe's Companies (NYSE: LOW). The company ranks as the second-largest home improvement retailer in the world. Its market cap hovers around $140 billion.

Lowe's operates more than 1,700 home improvement stores throughout the U.S. It serves individuals performing do-it-yourself fixer-upper 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's beaten the market over the long term. For example, Lowe's more than doubled the return of the S&P 500 over the last 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 victory could benefit Lowe's

In August, Vice President Harris unveiled her plan to lower housing costs. She wants to provide up to $25,000 to first-time homebuyers to help with their down payments. First-time homebuyers would also receive a $10,000 tax credit. Harris' plan also features tax incentives to promote the construction of starter homes and affordable rental housing.

How could this plan help Lowe's? For one thing, Lowe's caters to homebuilders. It even has a strategic alliance with the National Association of Home Builders that offers discounts to the organization's members. Lowe's should have an opportunity to profit from any federal initiative that boosts the construction of new houses.

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

Of course, a Harris victory in November by itself might not be enough. If she's elected as the next president, she'll need support in Congress to pass her housing plan.

A good pick 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.

Over the short term, lower interest rates could provide a catalyst for Lowe's stock. Federal Reserve Chairman Jerome Powell has strongly hinted that rate cuts will be coming soon. When interest rates fall, mortgage rates usually do too. This spurs 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 median age of homes in the U.S. is over 40 years old. Home improvement projects will needed for decades to come. And Lowe's will be there to meet those needs.

Should you invest $1,000 in Lowe's Companies right now?

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Keith Speights has positions in Lowe's Companies. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.

This Dividend King Could Be a No-Brainer Buy If Kamala Harris Beats Donald Trump in November was originally published by The Motley Fool