Is Walmart the Low Volatility Stock to Buy According to Billionaire Ken Fisher?

Ladies and gentlemen, let me tell you something: Walmart Inc. (NYSE:WMT) is a stock that you need to have on your radar right now! This retail giant is not just a household name; it's a powerhouse in the world of low volatility stocks. And if you're following the wisdom of billionaire Ken Fisher, you know that stability and consistent growth are the name of the game. Let's dive in and see why Walmart is the low volatility stock to buy right now!



First things first, let's talk about Ken Fisher's investment philosophy. This guy is a legend in the financial world, and for good reason. He's all about long-term investments and spreading out your bets to reduce risk. Fisher Asset Management, the firm he founded, is a testament to this strategy. They've got over $240 billion under management, and they're heavily invested in sectors like technology, services, financial services, healthcare, and basic materials. Diversification is key, and Walmart is a perfect example of a company that embodies this philosophy.

Now, let's talk about Walmart's financial performance. In the third quarter of 2024, Walmart delivered solid results. Sales were up 5.5% to $169.6 billion, and operating income increased 8.2% to $6.7 billion. E-commerce sales were up 27% year over year, driven by a 22% increase in the US. This is a company that's not just surviving; it's thriving in a changing retail landscape. And with the use of artificial intelligence solutions and machine learning models, Walmart is staying ahead of the curve. Shopper traffic was up by 3% in the third quarter, resulting in higher store volumes. This is a company that knows how to adapt and grow!

But what really sets Walmart apart is its low volatility profile. Walmart's beta, a measure of its stock's volatility relative to the market, is 0.54 over the past 60 months. That's lower than the 60-month beta of the SPDR S&P Retail ETF (XRT), which is 0.65. This means that Walmart's stock price is less volatile than the broader retail sector and the market as a whole. And with a consistent dividend payout and growth, Walmart provides investors with a reliable income stream. The company has consistently increased its dividend payout over the years, with the current TTM dividend payout of $0.83 being significantly higher than the initial payout of $0.01 in 1974. This consistent dividend growth has helped to attract long-term investors who are looking for a stable and predictable income stream, which can help to reduce the overall volatility of the stock.



Now, let's talk about why Walmart is an attractive investment option for risk-averse investors. With a beta of 0.54, Walmart's stock price is less volatile than the broader retail sector and the market as a whole. This stability is further supported by Walmart's consistent dividend payout and growth, which provide investors with a reliable income stream and help to reduce the stock's price volatility. Walmart's dividend yield of 1.18% as of July 11, 2024, may not be the highest among retail stocks, but it is competitive and provides a steady return on investment. During market downturns, investors may seek out stocks with higher dividend yields as a safer investment option. Walmart's dividend yield, while not the highest, is still attractive and can help stabilize its stock price. Walmart's dividend payout ratio is relatively low, indicating that the company is not overpaying dividends at the expense of its earnings. As of July 11, 2024, the company's payout ratio is approximately 25%, which means that the company is retaining a significant portion of its earnings to reinvest in its business. This balance between dividend payouts and reinvestment can help maintain the company's financial health and stock price stability during market downturns.

In conclusion, Walmart Inc. (WMT) is an attractive low volatility stock to consider buying right now. Its low beta, consistent dividend payout and growth, competitive dividend yield, and balanced dividend payout ratio contribute to its stock price stability during market downturns. However, it is essential to conduct further research and consider the company's fundamentals, market conditions, and your investment goals before making a decision. So, do yourself a favor and add Walmart to your portfolio today!