Walmart raises annual dividend 9 percent to $0.83 per share, the largest increase in over 10 years, marking 51st consecutive year of dividend increases

Rhea-AI Summary

Walmart Inc. (WMT) announces a 9% increase in annual cash dividend for fiscal year 2025, marking the 51st consecutive year of dividend growth. The dividend of $0.83 per share will be paid in four quarterly installments, reflecting confidence in growth potential and cash flow. Walmart also approved a 3-for-1 stock split, granting two additional shares per holder of record, with trading on a post-split basis starting on February 26, 2024.

Insights

Financial Analyst

The announced dividend increase by Walmart is a significant financial event, indicating a positive signal to the market about the company's financial health and future expectations. A 9 percent increase is substantial, particularly for a company of Walmart's size and represents the largest hike in over a decade. This move will likely be interpreted by investors as a strong vote of confidence from management in the company's cash flow and growth potential. Moreover, the consistency of dividend increases over the past 51 years underscores Walmart's commitment to returning value to shareholders and its ability to do so even in varying economic conditions.

Dividends are a critical component of shareholder total returns, especially for income-focused investors. The increment in dividends could attract new investors looking for stable income streams, potentially positively impacting the stock's demand. However, it is also essential to consider the payout ratio and whether the increased dividend is sustainable in the long term without compromising the company's ability to reinvest in its business operations.

Market Research Analyst

Walmart's decision to increase its annual dividend coincides with the company's strategic focus on being a people-led, tech-powered omnichannel retailer. As the retail industry continues to evolve with a significant push towards e-commerce and digital transformation, Walmart's investment in technology and omnichannel capabilities could be driving efficiencies and creating additional cash flows, thereby enabling such a dividend increase.

It's also worth noting that the dividend increase follows a 3-for-1 stock split, which will make the stock more accessible to a broader base of investors by lowering the price per share. Stock splits often lead to increased liquidity and can sometimes result in a higher market valuation, as they suggest that management is anticipating continued growth. The combination of a stock split and a dividend increase could be seen as a dual strategy to enhance shareholder value.

Economist

From an economic standpoint, Walmart's dividend increase can be analyzed in the context of the broader economic environment. Amidst concerns of inflation or economic downturns, a company increasing its dividend may signal resilience and a strong competitive position within the retail sector. Walmart's scale and diversification across different markets and product categories provide it with a cushion against economic headwinds.

Furthermore, the increase in dividends could be indicative of Walmart's capital allocation strategy, where it balances reinvestment in the business with direct returns to shareholders. This strategy can have broader economic implications, such as influencing consumer confidence and spending, especially when announced by a retailer as large and influential as Walmart.

BENTONVILLE, Ark.--(BUSINESS WIRE)-- The Board of Directors of Walmart Inc. (NYSE: WMT) approved an annual cash dividend for fiscal year 2025 of $0.83 per share on a post-stock split basis, or $2.49 per share on a pre-split basis. This represents an approximately 9 percent increase from the $2.28 per share paid for the last fiscal year. The fiscal year 2025 annual dividend of $0.83 per share will be paid in four quarterly installments of $0.2075 per share, according to the following record and payable dates:

Record Dates	Payable Dates
Mar. 15, 2024	Apr. 1, 2024
May 10, 2024	May 28, 2024
Aug. 16, 2024	Sep. 3, 2024
Dec. 13, 2024	Jan. 6, 2025

“Dividends continue to be a part of our diversified capital returns approach. We're proud to be increasing our annual dividend for the 51st consecutive year. This year’s 9 percent increase is the largest in over a decade, and a sign of our confidence in our growth potential and cash flow,” said John David Rainey, executive vice president and chief financial officer at Walmart Inc.

On January 30, 2024, Walmart announced the board of directors authorized a 3-for-1 forward split of common stock and a proportionate increase in the number of authorized shares. As a result of the stock split, each holder of record of common stock as of the close of business on February 22, 2024 will receive two additional shares of common stock, to be distributed after the close of trading on February 23, 2024. Trading in the company’s common stock on a post-split basis will begin on February 26, 2024. For additional information, refer to our Report on Form 8-K filed with the SEC dated January 31, 2024.

Walmart Inc. (NYSE: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 255 million customers and members visit more than 10,500 stores and numerous eCommerce websites in 19 countries. With fiscal year 2024 revenue of $648 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240219683823/en/

Investor Relations Contact

Steph Wissink

Sr. Vice President, Investor Relations

ir@walmart.com

Kary Brunner

Sr. Director, Investor Relations

Media Relations Contact

Kasey Anderson

Director, Global Communications

800-331-0085

Source: Walmart Inc.

FAQ

What is Walmart Inc.'s (WMT) annual cash dividend for fiscal year 2025?

Walmart Inc. (WMT) approved an annual cash dividend of $0.83 per share for fiscal year 2025, representing a 9% increase from the previous year.

How will Walmart Inc. (WMT) pay the annual dividend for fiscal year 2025?

The annual dividend of $0.83 per share will be paid in four quarterly installments of $0.2075 per share.

What is the record date and payable date for Walmart Inc.'s (WMT) annual dividend for fiscal year 2025?

The record dates are Mar. 15, 2024, May 10, 2024, Aug. 16, 2024, and Dec. 13, 2024. The payable dates are Apr. 1, 2024, May 28, 2024, Sep. 3, 2024, and Jan. 6, 2025.

What was Walmart Inc.'s (WMT) revenue for fiscal year 2024?

Walmart Inc. (WMT) reported fiscal year 2024 revenue of $648 billion.

What did Walmart Inc. (WMT) announce regarding a stock split?

Walmart announced a 3-for-1 forward split of common stock, granting two additional shares per holder of record, with trading on a post-split basis starting on February 26, 2024.