Dividends4Life: 3 Reasons to Love Walmart's Dividend

3 Reasons to Love Walmart's Dividend

Posted by D4L | Wednesday, March 29, 2023 | | 0 comments »

As investors look for ways to combat uncertainty in their portfolio, one idea is to beef it up with dividend income from dividend stocks. Investing in Walmart (WMT -0.85%), an enduring big-box retailer and grocery store that prides itself on low prices, is one way to do this amid a difficult economic backdrop. Highlighting Walmart's resilience, its dividend has been around for decades. Even better, the company has increased this dividend every year for 50 years in a row. As investors look for high-quality dividend stocks to add to their portfolio, here are three reasons why Walmart stock should be a top consideration.

1. Dividend growth -Walmart reminded investors of its strong balance sheet and cash flow late last month when it announced its latest dividend increase. The company said it was increasing its quarterly dividend by 2% to $0.57, or $2.28 annually.2. A low payout ratio. It's also worth noting that Walmart is only paying out about half of its earnings in dividends. Specifically, the grocer has a payout ratio of 52%. A payout ratio this conservative means the company has plenty of room to increase its dividend in the future. 3. A durable business - The best part of Walmart's dividend, however, is the durability of its underlying business. Walmart was founded in 1962 and continues to grow its top line at meaningful rates even today.

Source: Motley Fool

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