The newest member of the $1 trillion market club isn't a surprise. Walmart (WMT +0.99%) became a part of this hallowed institution last week, joining a select cadre of mostly tech stocks. But it did so in a more traditional way -- as a leading retail chain that just keeps getting better.
Although it recently switched from the New York Stock Exchange (NYSE) to the Nasdaq in a bid to shine a light on its tech prowess, the company still uses a traditional retailing model, and it's the only Dividend King that has made the cut to reach this exclusive club.
Here's why Walmart is still so powerful after all these years, and why it should continue for many more.
Image source: Walmart.
Everyone's retailer
While Walmart is a discount retailer, some of its recent growth is due to expanding to a wider clientele. It has done this in a number of ways, starting with a stellar e-commerce platform. E-commerce sales increased 27% year over year in the 2026 fiscal third quarter (ended Oct. 31), driving a 5.8% increase in total revenue.
Walmart has an edge over Amazon in at least one way, which is its 4,700-strong store base, which doubles as a distribution hub. It can get orders out fast from stores, and it also appeals to customers who prefer store pickup for their digital orders, especially in markets where Amazon doesn't yet offer same-day delivery.
It also continues to change and in some instances upgrade its merchandise to appeal to a wider client base, including a more affluent customer. It recently launched a more upscale, health-branded product line, and it reaches this customer base through its website as well, since they're customers who might not come into its physical stores.
NASDAQ: WMT
Key Data Points
Why Walmart is winning
Walmart's edge isn't only in its use of stores as delivery hubs, but in its size in general. There's a Walmart within 10 miles of 90% of the U.S. population, and that's just its U.S. business; it has more than 10,800 stores worldwide, giving it ample room to grow in many markets. And despite its size, it continues to identify white space in the U.S. for expansion.
The company got a major thumbs-up from investors last year for its resilience against tariffs. It has many levers to pull to cut costs, and it has leverage with suppliers. It's also an essentials business, and that simple fact means that customers always need its products. Since it's a discount retailer, it's more resilient when there's economic pressure.
Walmart has raised its dividend annually for the past 52 years, which should be 53 next week, making it a Dividend King. Its yield is fairly low right now, at just 0.7%, since the stock has performed so well; investors are feeling great about its performance and potential. But the dividend is reliable under almost any circumstances, and it's another reason to buy Walmart stock.
