why is WMT "Dividend Princes"
7/18/2025 06:41am
Walmart's consistent dividend payments and attractive yield make it a "Dividend Prince" in the market. Here's the analysis:
1. **Long History of Dividend Growth**: Walmart has increased its dividends for 50 consecutive years, demonstrating a stable and growing commitment to returning value to shareholders.
2. **Attractive Dividend Yield**: The current dividend yield for Walmart is 0.94% as of July 17, 2025, which is competitive and attractive for income-seeking investors.
|code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|---|
|WMT|WMT.N|Walmart|20240717|3.7174618987050203|1.1221526115725748|169|
|WMT|WMT.N|Walmart|20240718|3.7174618987050203|1.1254800903699522|169|
|WMT|WMT.N|Walmart|20240719|3.7174618987050203|1.1265936395759717|169|
|WMT|WMT.N|Walmart|20240720|3.7174618987050203||169|
|WMT|WMT.N|Walmart|20240721|3.7174618987050203||169|
|WMT|WMT.N|Walmart|20240722|3.7072343400044083|1.1325163398692812|169|
|WMT|WMT.N|Walmart|20240723|3.7072343400044083|1.1281882519462136|169|
|WMT|WMT.N|Walmart|20240724|4.201929597593421|1.128987252124646|169|
|WMT|WMT.N|Walmart|20240725|4.201929597593421|1.138339045986861|169|
|WMT|WMT.N|Walmart|20240726|4.201929597593421|1.1422542275723704|169|
3. **Sustainable Payout Ratio**: The payout ratio is a metric that shows how much of earnings are paid out as dividends. A lower ratio indicates that more earnings are retained for growth. Walmart's payout ratio is -38.34%, which is negative due to the inclusion of share repurchases, but this indicates that the company is not only paying dividends but also actively buying back shares, a sign of confidence in its future prospects.
4. **Dividend Safety**: Walmart's dividend safety is supported by its strong free cash flow of $425 million as of March 31, 2025, which is a key indicator of its ability to sustain and grow its dividend payments.
|code|Ticker|Name|Date|Free Cash Flow|Free Cash Flow YoY|market_code|
|---|---|---|---|---|---|---|
|WMT|WMT.N|Walmart|2025 Q2|8.29296647E9|-4.84766568415799|169|
|WMT|WMT.N|Walmart|2025 Q3|8.667144489E9|9.174851519909451|169|
|WMT|WMT.N|Walmart|2025 Q4|1.2655046856E10|56.1693309266694|169|
|WMT|WMT.N|Walmart|2026 Q1|7.162026258E9|16.16063356560447|169|
5. **Consistent Dividend Increase**: Walmart has raised its annual dividend by 13% to $0.94 per share in 2025 and by 9% to $0.83 per share in 2024, showing a clear trend of increasing shareholder returns over time.
In conclusion, Walmart's long history of dividend growth, attractive yield, sustainable payout ratio, strong free cash flow, and consistent dividend increase make it a compelling dividend investment with a stable and growing income stream.