Investing in first-class dividend stocks is a reliable anti-crisis strategy. Today, with that in mind, I’m introducing you to another first-class dividend stock, Walmart (WMT).
The company from Bentonville, Arkansas is the world’s largest retail group. In fiscal year 2021/2022 (to the end of January), the group generated sales of around $573 billion – more than any other company around the globe.
Walmart employs 2.3 million people worldwide, making it also the world’s largest employer. Under the “Walmart” and “Sam’s Club” brands, the group currently operates 11,400 stores in 26 countries around the world.
49th Dividend Increase In A Row
Walmart was founded in 1945 and has been listed on the stock exchange since 1972. Two years later, the company paid its shareholders a dividend for the first time. Since then, we have seen the payout increase every year without exception. Most recently, the company announced an increase in the quarterly dividend to 56 cents per share.
For the year, Walmart pays shareholders $2.24 per share. With a dividend history of 49 years, Walmart is one of the so-called dividend aristocrats. In the U.S., this is the name for companies that raise their payout every year for at least 25 years without interruption.
Also Strong In Online Retailing
While many retail companies have slept through the trend toward online retailing, Walmart is a pioneer here. The industry leader has mastered the turnaround from traditional brick-and-mortar retail to online shopping in impressive style.
This year alone, the number of households supplied by the “Walmart InHome” delivery service is to be increased from 6 to 30 million. Online retail sales could rise to $75 billion. With virtual stores and its own digital currency, the company also wants to get into the metaverse in the future.
In addition to another dividend increase, shareholders will also benefit from share buybacks. In the current fiscal year, the company plans to buy back and cancel its own shares worth around $10 billion.
The Dividend History
Finally, let’s take a look at the dividend history. Walmart shareholders who bought shares 20 years ago, in 2002, at $62.18 each and are collecting $2.24 in dividends this year can enjoy a 3.60% dividend yield. Investors who joined the company 10 years ago after a period of weakness at a price of $59.84 will already achieve a dividend yield of 3.74% in 2021.
Newcomers currently get a yield of 1.58%. What is impressive about Walmart is not so much the level of the dividend yield, but rather the consistency and predictability of the dividend increases over a very long period of time.