Wednesday, July 27, 2016

Wal-Mart Stores Is A Rare Deal On Sale In A Toppy Market

dividend growth investing, value investing, discounted cash flow analysis
By GeneralCheese (Own work) [Public domain], via Wikimedia Commons

Over the last 60+ years Wal-Mart Stores (NYSE:WMT) has grown from one small store in Bentonville, Arkansas into the world's largest retailer with operations in 28 countries. Wal-Mart's annual revenues are now pushing near half a trillion dollars per year. Not bad for a company with such humble beginnings in small town Arkansas.
The 60 years of growth for the company has also been accompanied by 43 years of excellent dividend growth. That gives Wal-Mart Stores the title of Dividend Champion.
A lot has been said about Wal-Mart's demise; however, relatively meager yet achievable growth has the company trading at a discount to fair value. Read on to see what makes Wal-Mart a high quality company and why it's trading at a discount.
How about that dividend?
Wal-Mart has long been one the top dividend growth companies out there and rightfully so with a 43 year streak of rising dividends. Even more impressive is that Wal-Mart had routinely grown dividends by the mid-teens percentage annually.
Continue reading the article on Seeking Alpha.

Seeking Alpha - Wal-Mart Stores (WMT) Dividend Stock Analysis 2016


  1. I am long WMT so I am a little biased, but the case is..

    I bought shares at around $60 (November) when people were saying that WMT is over due to Amazon etc. (I obviously don't believe it). Nowadays after good results for last quarter investors are far more optimistic, but in fact nothing has changed (Amazon is still growing very fast). Now 2.7% dividend yield is appealing comparing to 10 year US Bond Yields, but at the beginning of the year it was not so obvious that yields in bonds will go down so much...

  2. I hate when people tell me that Walmart is dead because of Amazon. As you said, Walmart has $500,000,000,000 in revenue vs Amazon's $100,000,000,000. Granted it has the overhead to match, but it doesn't mean it is going bankrupt it just may not grow as fast.