May 03, 2025 a 07:31 am
WMT: Dividend Analysis - Walmart Inc.
Walmart Inc. has a long-standing tradition of dividend payments, showcasing a robust history of reliable shareholder returns. With over five decades of uninterrupted dividend history, Walmart exemplifies a stable income investment. As the market evolves, Walmart's ability to continue increasing dividends speaks to its financial health and operational efficiency.
Overview 📊
Walmart belongs to the Retail Sector. It consistently offers shareholder value through its dividends, with a modest dividend yield of 0.95%. Each share currently yields approximately 0.83 USD in dividends. Impressively, Walmart has maintained a steady dividend history for 52 years. The last dividend cut or suspension was experienced in 1982, underscoring its commitment to paying its shareholders.
| Details | Information |
|---|---|
| Sector | Retail |
| Dividend yield | 0.95 % |
| Current dividend per share | 0.83 USD |
| Dividend history | 52 years |
| Last cut or suspension | 1982 |
Dividend History 🗣️
Walmart's dividend history reveals its strong commitment to returning capital to shareholders, building trust through consistency. This stability is key for investors seeking predictable income. Below is a visual representation of Walmart's dividend payments over the past few years:
| Year | Dividend per share (USD) |
|---|---|
| 2025 | 0.940 |
| 2024 | 0.830 |
| 2023 | 0.760 |
| 2022 | 0.74668 |
| 2021 | 0.73332 |
Dividend Growth 📈
The growth trend in dividends reflects Walmart's ability to generate increasing revenue and profitability. Such growth is a marker of a healthy, expanding business, crucial for long-term investors.
| Time | Growth |
|---|---|
| 3 years | 4.21 % |
| 5 years | 3.27 % |
The average dividend growth is 3.27% over 5 years. This demonstrates moderate but steady dividend growth. Such stability is especially appealing to income-focused investors.
Payout Ratio ⚠️
The payout ratio is a critical measure of a company's dividend sustainability. It illustrates what portion of earnings and free cash flow is being returned to shareholders.
| Key figure | Ratio |
|---|---|
| EPS-based | 34.36 % |
| Free cash flow-based | 52.56 % |
At 34.36% (EPS) and 52.56% (FCF), Walmart's payout ratios suggest a balanced approach, keeping dividends sustainable while retaining earnings for growth and development.
Cashflow & Capital Efficiency 💰
Walmart's cash flow statements provide insights into its liquidity and capital allocation strategy. Understanding these metrics aids investors in evaluating the company's ability to cover dividends and reinvest in growth.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 1.60% | 3.40% | 3.06% |
| Earnings Yield | 2.46% | 3.48% | 2.98% |
| CAPEX to Operating Cash Flow | 65.26% | 57.68% | 58.45% |
| Stock-based Compensation to Revenue | 0.00% | 0.00% | 0.26% |
| Free Cash Flow / Operating Cash Flow Ratio | 34.74% | 42.32% | 41.55% |
With a consistent Free Cash Flow Yield, Walmart demonstrates robust cash generation capabilities crucial for dividend sustainability and operational growth.
Balance Sheet & Leverage Analysis 📉
A detailed analysis of Walmart's leverage ratios provides insight into its financial risk and structure, crucial for assessing the stability of dividends.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.66 | 0.73 | 0.77 |
| Debt-to-Assets | 0.23 | 0.24 | 0.24 |
| Debt-to-Capital | 0.40 | 0.42 | 0.43 |
| Net Debt to EBITDA | 1.31 | 1.32 | 1.67 |
| Current Ratio | 0.82 | 0.83 | 0.82 |
| Quick Ratio | 0.23 | 0.24 | 0.21 |
| Financial Leverage | 2.87 | 3.01 | 3.17 |
The leverage metrics show a prudent debt strategy, with manageable levels of leverage, supporting Walmart's ability to sustain its dividend policy over time.
Fundamental Strength & Profitability ✅
Walmart's profitability ratios highlight its capacity to generate returns and drive shareholder value, fortifying its dividend strategy.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 21.36% | 18.50% | 15.23% |
| Return on Assets | 7.45% | 6.15% | 4.80% |
| Margins: Net | 2.85% | 2.39% | 1.91% |
| EBIT Margin | 4.26% | 3.78% | 3.13% |
| EBITDA Margin | 4.31% | 6.00% | 4.92% |
| Gross Margin | 24.85% | 24.38% | 24.14% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Strong ROE and robust margins validate Walmart's operational efficiency, maintaining profitability essential for continuous dividend growth.
Price Development 📈
Dividend Scoring System 🎯
| Criteria | Rating (1-5) | Score |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 31/40
Rating
Walmart Inc. remains a strong, consistent performer in the dividend space. With its robust payout history, manageable payout ratios, and balance sheet strength, Walmart presents a reliable option for income-focused investors. Given its growth potential and financial stability, it continues to be an attractive choice for those seeking both income and capital preservation. 💼