Walmart (WMT +0.34%) is the largest company in the world by sales, and it's held on to that status tightly, even as tech stocks have surged and the world has gone digital. Although Amazon, the second-largest company, keeps getting closer, Walmart's simple retail model beats out everyone else.
This kind of strength is something every investor should have in their portfolios, and Walmart is an excellent candidate. Here are three reasons to buy it today.
Image source: Walmart.
1. It's safe
When the market is uncertain, it's the safe, established stocks that can tide your portfolio over. Investors have been pouring into Walmart stock, and it's crushed many growth stocks and the market itself over the past year as it's gained 47%.
Walmart's sheer size gives it an edge over its competitors. It has more than 10,500 global locations, including 4,600 in the U.S. alone. It's a discount retailer, so it appeals to customers at all times, but even more so when the economy is under pressure. It has tremendous leverage with suppliers, allowing it to play with price and change its supply chain when necessary.
Management said that with the new tariffs, it would have to raise some prices. But the company's exposure is limited, as most of its high-moving products are everyday essentials that it can easily keep flowing, with two-thirds of its product assortment already made in the U.S., and because it's a global company. In any case, Walmart has many levers to pull to offset the impact of new tariffs, such as shifting production to different regions and changing the materials it uses. Again, due to its scale and leverage, it can have suppliers make these changes.
It's also benefiting from some of its new businesses, such as a Prime-style membership program and advertising, which are high-margin and can make up some of the higher costs.
2. It's growing
Walmart has $685 billion in trailing-12-month sales, yet it still manages to report year-over-year growth consistently. Sales increased 4% (currency neutral) in the fiscal 2026 first quarter (ended April 30), and management expects sales to increase 3% to 4% for the full year as well.
The company constantly finds new ways to upgrade and boost sales. It recently launched a new line of premium products to attract a more upscale consumer, and it's still opening new stores. The advertising business, including the recently acquired Vizio ad-supported streaming, increased 50% year over year in the first quarter. This is an exciting new venture. Membership is also adding value, and membership fee income increased by 15% over this quarter last year.
NASDAQ: WMT
Key Data Points
One of its most compelling growth drivers lately has been e-commerce. Walmart was a bit behind the curve when e-commerce first exploded, losing significant ground to Amazon. But it's invested in its digital channels over the past few years and has a formidable program, including an edge over Amazon in using its thousands of stores for distribution and order fulfillment.
E-commerce sales increased 22% year over year in the first quarter, with a 21% increase in the U.S. and a 27% increase for the Sam's Club stores. Sam's Club represents its own opportunity as it continues to open stores across the globe.
3. It's reliable for passive income
Finally, Walmart is a Dividend King. That's an exclusive status given to stocks that have raised their dividends annually for at least 50 years, implying a rock-solid dividend and a growing check. Walmart has raised its dividend under all kinds of circumstances for the past 53 years, providing reliable passive income for retirees and other shareholders who count on it.
Walmart's 0.9% (at the current price) dividend isn't high-yielding. Its other qualities, though, are very attractive.
As the market continues to experience uncertainty, with no one knowing what lies ahead, Walmart stock can bolster your portfolio and create long-term shareholder value.
