Dividends4Life: Walmart Id A Buffett Dividend Stock

Walmart Id A Buffett Dividend Stock

Posted by D4L | Wednesday, November 02, 2011 | | 0 comments »

Walmart has been raising its dividend at an impressive rate. Since 2001, the declared annual dividend has increased from $0.27 annually to $1.46 by the end of the year. Walmart has grown its dividend by 18% annually during the past decade. Another important piece of information that potential investors should keep in mind is the fact that Walmart has increased its payout ratio However, since Walmart has been raising its dividend 18% annually relative to 12% earnings growth, an increase in the payout ratio has been seen.

An increase in dividends is expected over the coming years as management has expressed its desire to eventually raise its payout ratio to 60-65% of earnings. This, together with the expected high single digit earning growth during the coming years is a great combination for those who invest in Walmart. According to Forbes, Walmart is poised for a break out. The reasons for saying this are the following. WMT has been generating three consecutive months of positive same-store sales growth and three consecutive quarters of positive earnings.

Source: Guru Focus

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