Dividend Raise: Wal-Mart Stores (WMT)

Wal-Mart Dividend Raise

On February 18th, Wal-Mart raised their annual dividend 2%, from $1.96 to $2.00. This will be payable in four installments of $0.50 per share. This marks WMT’s 43rd consecutive year of dividend increases. WMT is the company with the longest dividend raising streak in The Dividend Beginner’s portfolio.

I hold 18 shares of WMT, so this 2% dividend increase adds a measly $0.72 in annual dividend income. Basically I am receiving one cent more per quarter per share, in total my annual dividend income from WMT has risen from $35.28 to $36.00, or an average 3$ per month.

The minuscule dividend increase from WMT has increased my 12-month forward dividend income from $1340.20 to $1,340.92, an increase of 0.05%.

While I believe in the long-term prospects of WMT as a whole, the dividend growth rate is abysmal. Had I the original capital I invested in WMT available right now I would definitely invest it in a stock with higher dividend growth. At the time I invested in this company I was not as hard on dividend growth as I am now. I purchased shares just before the stock hit it’s 10% in a day drop, and since then the stock has managed to climb back up to positive territory. I believe it could still go higher.

Wal-Mart

Aside from the dividend increase, WMT also released their Q4 2015 earnings, and here is an infographic to summarize. You may click on the image and enlarge it.

Unfortunately, it fails to mention the following

  • Per-share earnings were $1.49 vs. $1.61 in the same quarter last year (a decrease of 7.45%)
  • Sales for fiscal 2016 are projected to be flat, whereas previous estimates called for growth of 3 to 4 percent
  • For the full fiscal year, profit was $4.59 excluding certain one-time items, compared with $4.99 the year before (a decrease of 8.02%)

 

Wal-Mart FY16 Q4 Earnings

Do my fellow investors have a position in WMT? Any recent buyers? Recent sellers? How much did WMT’s 2% dividend increase add to your annual income?

4 Replies to “Dividend Raise: Wal-Mart Stores (WMT)”

  1. Nice picture!

    I own 150 shares of WMT, so that’s a great new for me! I’m looking for the 2% raise from doing nothing! That’s the best kind of raise! Walmart will become a King in 7 years if they continue to raise the dividend.

    1. Hey Vivianne,

      Good news for you with such a large share count. It is pretty nice getting a raise for doing nothing, despite how low it may be. Looking forward to WMT becoming a dividend king though.

      DB

  2. Getting more money is always a nice thing. I find it strange that Walmart earned less – was unhelpful currency exchange changes the main cause? It’s odd when the USA economy is growing (and the population too) that USA’s biggest retailer would sell less..

    Tristan

    1. Hi Tristan,

      A combination of both higher expenses, largely in part to increased wages for their employees I would assume, and yes the currency exchange shaved off a bit. From their press release, “On a constant currency basis, total revenue was $134.4 billion, an increase of 2.2%”.

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