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Tuesday, June 28, 2016

Recent Buy: Wal-Mart Stores, Inc.

24 June 2016: Bought 35 shares of WMT at $72.15 per share.

Wal-Mart Stores, Inc. (WMT) is the world's largest retailer. Based in Bentonville, Arkansas and founded in 1945, WMT is a multinational retailer consisting of more than 11,000 stores under 72 banners in 28 countries. It is the biggest private employer in the world with over two million employees.

WMT is a Dividend Champion with an impressive streak of 43 consecutive years of dividend increases. The company pays quarterly dividends in January, April, July and October.

At my buy price of $72.15 the stock yields 2.77%. Adding 35 shares of WMT to DivGro increases projected annual dividend income by $70 to $11,464.

Before this buy I owned 34 shares of WMT, which I bought in June last year at $75.40 per share and at a starting yield on cost (YoC) of 2.55%. Adding these 35 shares reduces my per share cost basis to $73.76 and increases average YoC to 2.71%.

To see my analysis of WMT and the reasons I added to my current position, please read this article at Seeking Alpha.

Since my purchase, WMT's share price dropped another 1%, so you could get in even lower than my buy price!

Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.


  1. DivGro,

    Always a great idea to get more Walmart in the portfolio. I've got a bunch of it as well as I view it as a recession stock. It's ready for when the recession hits. Yes- WHEN it hits. But it also does fairly well on a regular market as well because the company does such a good job at cutting the competition in more rural areas.

    1. Hi there, Dividend Reaper -- thanks for visiting and commenting. I agree WMT is a good recession stock. Also, I think WMT is making the right strategic moves to reposition itself to be competitive in the e-commerce space. It certainly has the muscle to do it and to (eventually) compete with the likes of Amazon.

  2. It's tough to grow when your already so big, facing competitive pressures, rising wages and such. Hopefully the e-commerce picks up for them. I was not impressed with their last dividend raise although it was probably smart not to raise it too much. I just want to see more growth. Thanks for the update.

    1. Hi Captain Dividend -- I haven't heard from you in a while! Great to see you back!

      I'm also not impressed with WMT's recent dividend raises (now 3 small raises in a row...) but I think the company is repositioning itself and will start to grow EPS in the near future, allowing it to increase dividends more substantially. Thanks for commenting!

  3. There's been a lot of the sky is falling talk about WMT and TGT. I agree that these two companies need to figure out a way to compete with the Amazons of the world, but at least for the next few years I like these stocks. I've been buying both. Nice purchase Ferdi

    1. I own both and I'm convinced they'll be fine in the long run. We shall see! Thanks for commenting, Investment Hunting!


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