3 Reasons Wal-Mart Is a Great Dividend Stock to Buy Today

There's no question that Wal-Mart (NYSE: WMT  ) has problems. But there's also no question that it remains a robust and thriving business that rewards shareholders with generous quarterly dividends.

Does this mean it's a great dividend stock for investors to buy today? In the video below, Motley Fool contributor John Maxfield explains why the answer is yes.

In the first case, its 2.5% yield easily outpaces the general market, measured by the S&P 500's 1.96% yield. Additionally, it distributes only 39% of its earnings to shareholders each quarter, meaning there's plenty of room left for its dividend to grow. Finally, Wal-Mart has now increased its dividend for 41 sequential years, qualifying it for inclusion in the coveted Dividend Aristocrats and suggesting that there's no reason for investors to fear that its dividend will be cut anytime soon.

As John explains, these factors make Wal-Mart one of the best dividend stocks in the market today.

Two stocks changing the retail world
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


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  • Report this Comment On April 13, 2014, at 11:11 PM, madmilker wrote:

    Wal*Mart like all Retail.....makes NOTHING...

    it only moves a countries currency...

    Unilever (UN) makes.....

    So, with the fact Wal*Mart's Global Procurement Office being in China...

    Wouldn't it make better "cents" to invest in something that "makes" in the Netherlands....

    1975 was the last year America had a trade surplus....

    Besides...Dutch-American ties provide nearly 625,000 jobs in the U.S....

    Don't you realize...

    Moving all the US dollars to China...

    means China owns US...

    because almost all China manufacturing is owned by the Chinese Government...

    Maybe you need to ask yourself..

    Why Wal*Mart moved its Global Procurement Office from Hong Kong to China...

    and why almost every year they sell Bonds just before or after they pay a dividend....

    duh..!

    and have you looked at its DEBT laterly...

    Makes some think it is being run by the turnips on Jenkins Hill in Washington D. C.

    :)

    Forgive me Lord...

    I just had to type that about the turnips...

    because in 1975 the total US Government Debt was a mere $533 billion and in just 38 years...

    it's over $17 trillion...

    so, whether a republican or democrat...

    THEY ALL TURNIPS...

    and Wal*Mart is more Chinese than American...

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