Everything You Need To Know About Walmart Stock

Everything You Need To Know About Walmart Stock

The retail giant Walmart Inc has been a favorite among long-term investors for decades. With a vast balance sheet and stable profitability, Walmart has attracted billions of dollars in stock investment from the U.S. and overseas. 

Some of the most successful investors of all time, such as Warren Buffett, are big proponents of Walmart, which has proven that it has what it takes to stand the test of time and deliver superior shareholder value. The company was also fairly quick to embrace the e-commerce trend that dominated the retail space from the 2010s. Walmart has also successfully expanded its operations overseas - with Walmart International and various national supermarket chain investments across the globe, such as Massmart in South Africa, ASDA in the UK, and Seiyu Group in Japan, among others. 

Walmart’s robust balance sheet and over 2,3 million employees make it a formidable force in the global retail market and one of the largest employers in the United States. 

Walmart’s reputation of stability and steady dividends have become a welcome addition to the portfolios of millions of investors around the world. 

10 Things You Should Know About Walmart Stock

  • Walmart is the largest retail company in the world, with annual revenues of $600 billion
  • The company was founded in 1962, as Wal-Mart Discount City
  • The company is listed on the New York Stock Exchange, under the ‘WMT’ ticker and is a part of the Dow Jones Industrial Average and the S&P 500 - two of the most popular stock indexes in the world 
  • Walmart's IPO was in 1972 when the company offered 300,000 shares of its stock to the public at a price of $16.50 per share
  • The Walton family, who founded Walmart, still owns a significant portion of the company's stock (approximately 50%)
  • In 1999, Walmart became the first company in history to reach a market capitalization of $100 billion
  • Walmart has paid a dividend every year since 1974 and has increased its dividend each year for over four decades
  • The company has undergone multiple stock splits over its long operational history, with the last 2-for-1 split taking place in 1999
  • As of November 2022, the company operated over 10,500 retail locations worldwide
  • As of April 2023, Walmart had a market capitalization of over $400 billion - making it one of the largest publicly-traded companies in the world

Walmart Stock Performance & Financials

Walmart stock has long been championed as one of the most stable stocks on the market and with good reason. The company has enjoyed steady stock growth over the past five years when it returned over 70% to its shareholders. 

While the 2022 bear market was rough for most retail businesses, Walmart managed to withstand the headwinds and has since managed to boost its bottom line considerably. The stock has a dividend yield rate of 1.53%, which amounts to a quarterly dividend of $0.57. 

As for financial performance, Walmart’s latest quarterly report from January 2023 showed the following:

  • Quarterly revenues reached $164.05 billion - a 7.31% increase YoY
  • $6.27 billion in net income, which is a 76.17% jump YoY
  • A net profit margin of 3.83% - up by 64.38%

Walmart’s impressive financial and stock performance maintains the stock as one of the most popular portfolio inclusions for long-term investors. What the company may lack in annual growth, it supplements by steady dividend payments. 

Pros & Cons Of Investing In Walmart Stock

Investors seeking rapid growth may be disappointed with Walmart's stock. This is why it is imperative to understand the unique advantages and drawbacks that come with investing in Walmart. 

Pros

  • Consistent revenue growth - Walmart is a retail titan which steadily grows its revenues year after year
  • Diversified revenue streams - Walmart is not solely exposed to the United States retail market, which allows the company to have some room for growth outside of the home market as well
  • Consistent dividends - Walamrt has been able to pay dividends every year since 1974 and manages to grow its dividend payout consistently
  • Household name - Walmart has a well-established brand that is known throughout the world, which helps the company to maintain cost-efficient marketing campaigns
  • E-commerce investments - Walmart has been investing heavily in e-commerce solutions for its business to keep up with changing consumer spending habits 

Cons

  • Low margins - Walmart operates on a low-margin business model, which can limit its profitability and make it vulnerable to economic downturns
  • Fierce competition - Walmart has long been facing competition from e-commerce giants, such as Amazon.com, which limits Walmart’s room for future growth
  • Regulatory risks - Walmart is a huge company with billions of dollars in annual turnover, which attracts more regulatory scrutiny towards the company and could lead to fines, legal charges, etc. that can negatively impact the brand
  • Dependence on consumer spending - Walmart's revenue is highly dependent on consumer spending, which can be affected by economic conditions and consumer confidence levels
  • Labor issues - Walmart has been subject to frequent labor disputes over the years, which is another liability towards the image of Walmart as a brand and employer

Key Takeaways From Everything You Need To Know About Walmart Stock

  • Founded in 1962, Walmart Inc is the largest retailer in the world and generates over $600 billion in annual revenues
  • Walmart is a constituent of the Dow Jones Industrial Average and the S&P 500 - two benchmark indexes of the U.S stock market
  • Walmart owns stakes in various overseas retail chains, such as ASDA in the UK and the Seiyu Group in Japan, among others
  • Walmart has a long dividend payout history, which started in 1974, and has managed to increase dividends consistently throughout the years
  • WMT is one of the most popular stocks for long-term investors, thanks to its stable growth and robust dividends 
  • Walmart operates over 10,500 retail locations around the world, with a presence in 20 countries 

FAQs On Everything You Need To Know About Walmart Stock

Does Walmart pay dividends?

Yes. Walmart has a long history of dividend payments, dating back to 1974. The company has since managed to steadily grow its dividend payouts year after year. 

Is Walmart a blue-chip stock?

Yes. WMT is a blue chip stock listed on the NYSE and is a component of the Dow Jones Industrial Average and the S&P 500 - two of the most followed indexes of the United States stock market

Is Walmart stock a good buy?

While it is impossible to accurately determine the future stock growth of a company, Walmart has long been a popular stock among long-term investors with steady growth, healthy dividends, and a stable balance sheet. 

"..we've got to have store growth and online growth food and
consumer growth and general merchandise growth to make the mix work and so that's what we'll get done" - Doug McMillon