Dividend Raise: Wal-Mart Stores (WMT)
On February 18th, Wal-Mart raised their annual dividend 2%, from $1.96 to $2.00. This will be payable in four installments of $0.50 per share. This marks WMT’s 43rd consecutive year of dividend increases. WMT is the company with the longest dividend raising streak in The Dividend Beginner’s portfolio.
I hold 18 shares of WMT, so this 2% dividend increase adds a measly $0.72 in annual dividend income. Basically I am receiving one cent more per quarter per share, in total my annual dividend income from WMT has risen from $35.28 to $36.00, or an average 3$ per month.
The minuscule dividend increase from WMT has increased my 12-month forward dividend income from $1340.20 to $1,340.92, an increase of 0.05%.
While I believe in the long-term prospects of WMT as a whole, the dividend growth rate is abysmal. Had I the original capital I invested in WMT available right now I would definitely invest it in a stock with higher dividend growth. At the time I invested in this company I was not as hard on dividend growth as I am now. I purchased shares just before the stock hit it’s 10% in a day drop, and since then the stock has managed to climb back up to positive territory. I believe it could still go higher.
Aside from the dividend increase, WMT also released their Q4 2015 earnings, and here is an infographic to summarize. You may click on the image and enlarge it.
Unfortunately, it fails to mention the following
- Per-share earnings were $1.49 vs. $1.61 in the same quarter last year (a decrease of 7.45%)
- Sales for fiscal 2016 are projected to be flat, whereas previous estimates called for growth of 3 to 4 percent
- For the full fiscal year, profit was $4.59 excluding certain one-time items, compared with $4.99 the year before (a decrease of 8.02%)
Do my fellow investors have a position in WMT? Any recent buyers? Recent sellers? How much did WMT’s 2% dividend increase add to your annual income?