Is Walmart Inc. (WMT) the Best Low Volatility Stock to Buy Right Now?

In the current market landscape, investors are increasingly seeking low volatility stocks to mitigate risks and maintain steady returns. Walmart Inc. (WMT), the world's largest retailer, has consistently demonstrated a low volatility profile, making it an attractive option for investors. This article explores whether Walmart is the best low volatility stock to buy right now, supported by data and expert insights.



Walmart's beta, a measure of its stock's volatility relative to the market, is 0.54 over the past 60 months. This is lower than the 60-month beta of the SPDR S&P Retail ETF (XRT), which is 0.65. A lower beta indicates that 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 history is a testament to its financial stability and commitment to shareholders. 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.

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.

Disclaimer: This article is a starting point for further investigation and not a definitive recommendation. Always consult with a financial advisor before making investment decisions.