This company had another excellent quarter that sent share prices higher as investors were faced with the retail giant remaining strong again. The real story begins with operating income in constant currencies. The pressure there wasn’t that bad for what was supposed to be a hard year. The dogma about retail is about all declining comparable sales, but the company posted increases again with more expected in the next quarter. It has exceptionally strong free cash flows, and its share buyback program was so successful total dividends declined. Dividends to each shareholder were up of course, the retirement of so many shares simply exceeded the growth rate in dividends.
Wal-Mart (NYSE:WMT) delivered a beat on earnings with a miss on revenue. Any poorly scripted automated news site can tell you that. Let's dive deeper into the real story that sent Wal-Mart shares higher, because it was not beating on earnings by a penny. The relatively low multiples for Wal-Mart indicate a company Wall Street refuses to believe in. The company was trading at exceptionally cheap valuations for price to earnings, EV to EBITDA, or price to free cash flows. Those low multiples depend on Wal-Mart being unable to continue growing. If Wal-Mart is growing same store sales even slightly while rapidly buying back stock and paying out their dividend, the total return picture looks pretty solid. There is also the challenge of significantly higher wages for their lower level employees.
Source: Seeking Alpha
Related Articles:
- 17 Investments That Pay Monthly Dividends
- 5 Dividend Stocks To Build Your Future Security
- 7 Dividend Stocks With A Low Payout Ratio
- 5 Dividend Stocks Beating the S&P With Positive Returns In Excess of 50% YTD
- Income Annuities vs. Dividend Stocks
Dividends, Free Cash Flows, And Positive Comparable Sales:
Posted by D4L | Tuesday, March 14, 2017 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
I like solid returns! I think that Walmart still has plenty of good years in them.