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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
It’s no secret that most investors who buy high-yield stocks are looking for income. But every once in a while, yield hunters may come acros...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Dividend-paying securities are the major sources of consistent income when returns from the equity market are at risk. Why Growth-Focused Di...
-
Not all stocks that pay high dividends are too good to be true. In fact, some stocks with high yields have lots of room to grow, or they tra...
-
After an abysmal 2018, real estate investment trusts (REITs) have been on a roll this year. After pulling one of the worst performances sinc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Cheap stocks can be hard to find in a high-flying market like the current one. The S&P 500 is flirting with all-time highs following its...
-
Large-cap consumer staples companies are not known for making big moves in their share prices. But on the morning of Monday, April 22, Kimbe...
-
Big, boring AT&T (NYSE:T) recently made a splash, selling its minority stake in streaming video site Hulu. AT&T stock gained 0.7% on...
-
Finding great dividend stocks isn't always about searching out the highest dividend yield. Often, especially for retirees seeking a mixt...
I like solid returns! I think that Walmart still has plenty of good years in them.