Walmart’s 44th Consecutive Dividend Increase
On Feb. 21, 2017, “The Board of Directors of Wal-Mart Stores, Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2018 of $2.04 per share, an increase of 2 percent from the $2.00 per share paid for the last fiscal year.” (walmart.com)
Walmart’s share price rose significantly as they reported Q4 FY 2017 earnings. While their e-commerce appears to be gaining traction, there is a lot of uncertainty surrounding brick & mortar retail.
However I like Walmart’s business resistance in a recessionary period as they provide low-cost products. It appears lately they have been pushing for even lower costs from providers.
My largest concern for Walmart is President Trump’s border tax talk. The details have not yet been released but it does not favor Walmart… However with the tax cuts and deregulation, it’s possible that Walmart will still come out stronger despite everything. This is why, at least for the time being, I’m holding on to my WMT shares.
Dividend Income increased 0.03%
Considering the Dividend Beginner portfolio contains 18 shares of Walmart, my annual income from WMT has increased by $0.72, from $36.00 to $36.72.
My 12-month forward dividend income has increased from $2,543.39 to $2,544.11, an increase of 0.03%. My income from WMT accounts for 1.44% of my annual dividend income.
This small increase doesn’t really do anything to move the portfolio. A 2 percent increase from a company with an already relatively small yield compared to my other portfolio constituents is bound to have that effect. For now I’ll take it, but there doesn’t appear to be much growth or yield in this name.
This would have required an investment of $25, at a yield of 2.85% (WMT’s dividend yield on the date of the raise) to generate $0.72 in dividend income. That’s the equivalent of getting up to 2.5 hours of your life back, at a Quebec minimum wage of $10.75.