Is Walmart Inc. (NYSE:WMT) A Dividend Darling?

In the ever-evolving landscape of retail, Walmart Inc. (NYSE:WMT) stands as a titan, dominating the market with its vast network of stores and unparalleled logistics. As investors eye the upcoming dividend, the question on everyone's mind is: Is Walmart Inc. worth considering for its dividend payout? Let's dive deep into the numbers and the narrative to find out.

Walmart's dividend yield as of March 17, 2025, is 0.72%, which is relatively low compared to some of its peers in the retail sector. For instance, Target (TGT) has a dividend yield of 4.21%, Costco (COST) has 0.51%, Dollar General (DG) has 3.01%, Macy's (M) has 5.15%, Kohl's (KSS) has 18.25%, eBay (EBAY) has 1.64%, and PriceSmart (PSMT) has 2.56%. These figures indicate that Walmart's dividend yield is not as competitive as some of its peers, which might make it less attractive to investors seeking high dividend returns. However, Walmart's consistent dividend payments and its status as a stable, well-established company could still make it an attractive option for investors looking for reliable income.



Walmart's decision to maintain or adjust its dividend payout is influenced by several key factors, including its financial performance, market conditions, and strategic goals. For instance, in the fiscal Q3 2022, Walmart reported a revenue of $140.52 billion, with a year-over-year change of 4.32%. However, the net income was $3.10 billion, showing a significant decrease of 39.53% year-over-year. This decline in net income could influence Walmart's decision to adjust its dividend payout to ensure financial stability. The diluted EPS was $1.11, down 38.33% year-over-year, which also reflects the company's financial health and its ability to maintain or increase dividends.

Market conditions, including economic trends and competitor performance, also play a role in Walmart's dividend decisions. Walmart's dividend yield (TTM) as of March 17, 2025, was 0.72%, which is lower than its average dividend yield over the last 5 years (1.40%). This suggests that Walmart may be adjusting its dividend payout in response to market conditions and competition. Additionally, the total return for Walmart (WMT) stock is 36.41% over the past 12 months, indicating that the company's stock performance is also a factor in its dividend decisions.

Walmart's strategic goals, such as expanding its e-commerce presence and investing in technology, may influence its dividend payout. For instance, Walmart has been investing in its e-commerce platform to compete with online retailers like Amazon. These investments may require significant capital, which could impact the company's ability to maintain or increase its dividend payout. However, Walmart's commitment to environmental sustainability efforts, social impact, and corporate transparency, as reflected in its CDP Climate Score of A, may also influence its dividend decisions.

Walmart's dividend history shows a consistent pattern of dividend payments, with an annual dividend of $0.94 per share and a yield of 1.07%. The next ex-dividend date is Dec 12, 2025, and the dividend is paid every three months. This consistent dividend history suggests that Walmart values maintaining a stable dividend payout to attract and retain investors. However, the dividend cover of approximately 2.3 indicates that the company has enough earnings to cover its dividend payments, which provides flexibility in adjusting the dividend payout if necessary.

Walmart's stock performance over the past year and five years has significantly impacted its dividend yield. As of March 17, 2025, Walmart's total return over the past 12 months is 36.41%, and it has increased by 28.66% this year. The 5-year total return is 107.47%, meaning $100 invested in WMT stock 5 years ago would be worth $207.47 today. This strong performance has contributed to a dividend yield of 0.72% as of March 17, 2025, which is lower than the average dividend yield of 1.40% over the last five years.

The dividend yield is calculated by dividing the annual dividend payment by the prevailing share price. Walmart's annual dividend is $0.94 per share, with a yield of 1.07%. The dividend is paid every three months, and the next ex-dividend date is December 12, 2025. The previous dividend payment was $20.75, which went ex one month ago and was paid eight days ago.

The strong stock performance has likely led to an increase in the share price, which in turn has reduced the dividend yield. For example, the share price on March 17, 2025, was $87.93, which is significantly higher than the share price a year ago. This increase in share price has resulted in a lower dividend yield, as the dividend payment remains constant while the share price increases.

Insights drawn from this performance include the fact that Walmart's strong stock performance has led to a lower dividend yield, as the share price has increased faster than the dividend payment. However, the company's consistent dividend payments and strong financial performance suggest that it is committed to rewarding shareholders through dividends. Additionally, the company's dividend cover of approximately 2.3 indicates that it has sufficient earnings to cover its dividend payments, which is a positive sign for investors.

In conclusion, Walmart Inc. (NYSE:WMT) is a retail giant with a strong track record of dividend payments. While its dividend yield may not be as competitive as some of its peers, its consistent dividend payments and strong financial performance make it an attractive option for investors looking for reliable income. However, investors should also consider the company's strategic goals and market conditions, which may influence its dividend payout in the future.