Dividend Increase – Walmart (WMT)
On February 20th, Walmart. announced a dividend increase of 2.0%. This will increase their dividend per quarter from $0.51 to $0.52. It is payable on April 2nd for shareholders of record on March 9th.
This will mark the 43rd consecutive annual dividend increase. With a payout ratio around 46.8% I think they will be able to continue this streak for many more years to come.
Walmart is currently offering a dividend yield of 1.95% after todays sell off.
Walmart has had a tremendous 12 month rally but after reporting earnings and forward guidance today their stock was hit very hard. It closed down almost $11 from where it opened up. I have to be honest here, I am not sure what caused such a large sell off. I know they missed slightly on earnings and also reported less growth in their e-commerce division. I am not sure that these points along warranted such a large sell off.
I can only speak for myself here but I still like the company. I definitely would not start a position here but I am not going to rush out and sell the stock that I do own. They have been spending a lot of money in the ecommerce space to keep up with Amazon but I think that is necessary if they want to stay relevant.
A small dividend increase like this will not affect my income a whole lot since I don’t have a large position in the company. With this increase it will add an additional $0.10 to my quarterly dividend and will add $0.42 to my projected annual dividend income. This is not taking into account the compounding factor.
At the current time, Walmart is priced above my cost basis. It is a stock that I will continue to hold but I am not looking to add to my position at the current time.
Regardless of how large or small, I love all dividend increases. That is how we end up with More Dividends 😉
Do you currently hold any stock in Walmart? What do you think of this dividend increase? Just let me know in the comments.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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I’m a bit disappointed with the 2% increase but I hope they can return to growth in the future.
Captain Dividend recently posted…January 2018 Dividend Income
Even though it was not a large increase I plan on holding for the long term and I think they are doing good investing in their future. Thanks for stopping by Captain.
Hi Jason,
I echo your thoughts on Walmart. I have been a holder for several years. I would like to see bigger dividend increases, but understand they have been using their free cash flow to invest in e-commerce. I think they are slowly figuring it out and are becoming a formidable competitor to Amazon. I just can’t bet against them. I will hold and be patient. Tom
Tom from Dividends Diversify recently posted…The World Sure has Changed – Or has It?
I totally agree with you Tom. E-commerce is not in their wheelhouse but it is building onto their core business which is great. I am more than willing to ride it out and see where it goes. Thanks for stopping by Tom.