Wal-Mart’s Great Dividend Story: Cash Flow Monster Shares the Wealth

The dividend keeps rising at Wal-Mart (WMT), and thanks to a market grown skeptical on the giant retailer, so does the dividend yield.

WMT Dividend Chart

WMT Dividend data by YCharts

The payout ratio keeps rising, as Wal-Mart shares more of the wealth, but it remains conservative.

WMT Payout Ratio TTM Chart

WMT Payout Ratio TTM data by YCharts

Wal-Mart’s PE has fallen along with its revenue growth.

WMT PE Ratio Chart

WMT PE Ratio data by YCharts

Even with slower growth, Wal-Mart churns out enviable increases in net income, and even higher growth in EPS.

WMT Earnings Per Share TTM Chart

WMT Earnings Per Share TTM data by YCharts

Huge cash from operations comfortably funds stock buybacks, which boost the EPS, and store growth through capital spending, and with a nice dividend.

WMT Cash Operations TTM Chart

WMT Cash Operations TTM data by YCharts

Wal-Mart’s dividend yield, below 3%, isn’t likely to get yield junkies excited enough to buy the stock, and that’s OK. This is a long-term play, with an increasingly mature company to date beautifully managing its transition from growth. Among the largest-stocks, Pharma shares such as AstraZeneca (AZN), GlaxoSmithKline (GSK), Novartis (NVS), Merck (MRK), Bristol-Myers (BMY) and Pfizer (PFE) offer far fatter dividend yields. But their future revenues are more suspect, given huge patent expirations on big-selling drugs and the poor recent record of the drug industry in developing new medicines. Check out the Pharma stock charts here.

From the editors of YCharts Pro Investor Service which includes professional stock charts, stock ratings, stock screener and portfolio strategies.

Read more articles about: Company Analysis  

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