Walmart Inc. (WMT)
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Benefits of investing in Walmart
Walmart (WMT) is a multinational retailer in the United States that operates a chain of discount department stores and warehouse clubs. The company has more than 11,500 locations worldwide and is the world’s largest retailer by sales. Walmart (NYSE: WMT ) is also the world’s largest private employer, with over 2.2 million employees.
Walmart has invested in its employees, including raising wages and offering benefits to same-sex partners. The company is an attractive investment for investors as it has outperformed the S&P 500 index in recent years. Shares of this company, by the way, are no less interesting to trade than even the USD/EGP pair.
WMT Ticker: Stability and Brand Name
With Walmart, it’s well-known what an investor gets from an operational standpoint. The company is a retail giant and remains the largest company in the world regarding sales. It has also consistently grown sales and earnings per Walmart share over the past 20+ years.
The WMT price is expected to grow at an average annual rate of 5.6% over the next five years. Beyond Walmart stock price, these projections and past performance make Walmart a stable company that should be considered a long-term blue chip investment.
WMT share price: Dividends and reinvestment
For investors, Walmart has done an excellent job of managing growing profits, employing a sound reinvestment strategy, and returning value to shareholders. Over the past twelve months, the company has reinvested more than $10 billion in capital expenditures (CAPEX), paid more than $6 billion in dividends, and repurchased more than $4 billion in shares. Now some details about the company:
- Walmart has a track record of increasing its annual dividend every year since it began paying dividends in 1974, and its dividend yield is approximately 1.7%.
- Walmart’s stock price has nearly $15 billion in cash and short-term investments, giving the company additional opportunities to reinvest and return capital to shareholders.
These are all positive signs that, regardless of the stock’s current performance, Walmart should continue to grow and increase shareholder value through capital gains and dividends.
Focus on continuous innovation
Despite being a retail giant, the company has done a remarkable job of not slowing down its growth. Walmart has made great strides in adopting new technologies, such as the Scan and Go app for iOS and Android.
The Scan and Go app is designed to give customers a more efficient way to shop and to make Walmart’s day-to-day operations more efficient. The company is also investing in e-commerce to fend off competition from the likes of Amazon and eBay. It also tests new e-commerce strategies, such as self-checkout lockers for online orders.
Over the past decade, Walmart has made efforts to diversify its operations globally, which helps to mitigate the impact of economic downturns.
As a result, by investing in Walmart, investors can see an increase in international sales and profits and an increase in the value of their shares, which will be less affected by a global recession.