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Wal-Mart's $12.8 Billion Cash Return to Shareholders

Judging by the stock's reaction, investors weren't happy with Wal-Mart's (NYSE: WMT  ) latest earnings results. Shares have dipped since the retailer posted a less-than-2% rise in revenue over the last year. Still, Wal-Mart's financial strength gave the company room to fund a massive $12.8 billion annual cash return to shareholders.

In the video below, Fool contributor Demitrios Kalogeropoulos puts that capital return program in perspective, noting that it was split evenly between spending on dividends and stock buybacks. And as huge as it seems, that cash outlay represented less than half of Wal-Mart's overall profit for the year, which means the company has plenty of room to expand the program in the years ahead while still investing heavily in its business.

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  • Report this Comment On February 26, 2014, at 8:59 PM, madmilker wrote:

    [......"Walmart China firmly believes in local sourcing. We have established partnerships with nearly 20,000 suppliers in China. Over 95% of the merchandise in our stores in China is sourced locally. In addition, Walmart is committed to local talent development and diversity, especially the cultivation and full utilization of female staff and executives. 99.9% of Walmart China associates are Chinese nationals. All our stores in China are managed by local Chinese. Furthermore, over 60 percent of Walmart China associates are female and about 40% of those are at management level. In 2009, the company established the “Walmart China Women’s Leadership Development Commission” for driving women’s career development.".......]

    Nearly 20,000 suppliers in China...

    Is it not a fact most all manufacturing in China is run by the Chinese Government....

    Why would mean Wal*Mart is supporting the Government of China...

    Which with sales north of $450 billion yearly....

    would translate to billions more returning to the Government of China that makes your so-call $12.8 billion back to shareholders look like a hair on a gnat's butt...

    Why don't you tell everyone what they are giving back to the citizens of Mexico after that port deal in 2006.....


    why they left Germany and South Korea...

    even closed its office in Russia...


    the closing of stores in Brazil and China...

    yeap! China...

    and what about all those super cargo ships it commissioned years ago to bring that Made In China to America...

    Tell everyone how much each of those ships pollute...

    and with it putting less than 5% foreign in all its stores in China...

    would not that be depriving the consumers of China for purchasing foreign made items...


    and what about that all most $60 billion of debt...

    Who are they gonna return that to...

    Bill and Hillary by way of the Mena airport..

  • Report this Comment On February 27, 2014, at 9:26 AM, Mathman6577 wrote:

    I'm not holding the stock expecting big growth from WMT. I'm holding expecting dividend growth over a long period of time. If you want growth in the space go to Costco.

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Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

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9/1/2015 4:01 PM
WMT $63.82 Down -0.91 -1.41%
Wal-Mart Stores CAPS Rating: ***