Recent Buy – WMT

As I gave the heads-up to the reader of this blog, 1 WMT Jun 12 ’15 $74.50 put has been assigned. As a result, I bought 100 WMT(Wal-mart Stores) at $74.5. This share total will add $196 dollars to my annual gross dividend income.
Coinsidently, Dividend Dreams wrote about WMT in his recent blog post, I would like to mention about WMT based on his post.

An Overview of Wal-Mart

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. It operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, restaurants, apparel stores, drug stores, and convenience stores, as well as retail Websites, such as walmart.com and samsclub.com. The company’s stores offer meat, produce, deli, bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, and floral and dry grocery; health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; electronics, toys, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid services, movies, music, video games, and books; and pharmacy, optical, over-the-counter drugs, and clinical services. Its merchandise also include stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, and seasonal merchandise; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home décor, outdoor living, and horticulture products. The company also provides financial services and related products, including money orders, prepaid cards, wire transfers, money transfers, check cashing, and bill payment. In addition, it offers brand name merchandise, including hardgoods, softgoods, and selected private-label items, such as Member’s Mark and its own proprietary brands, such as Daily Chef and Simply Right. Further, the company operates banks that provide consumer financing programs. It operates approximately 11,000 stores under 72 banners in 27 countries; and e-commerce websites in 11 countries. The company was founded in 1945 and is headquartered in Bentonville, Arkansas  (source:  Yahoo! Finance)

Wal-Mart Dividends And Annual Growth Rate

  • 3-Year Compound Annual Growth Rate of 9.6%
  • 5-Year Compound Annual Growth Rate of 12%
  • 10-Year Compound Annual Growth Rate of 14%
  • Annual Dividend Yield of 2.70%
  • 5-Year Dividend Per Share Average of $1.61
  • 5-Year Dividend Yield Average of 2.27%
  • Payout Ratio of 39.87%

Assigned Put means my position of WMT is already deep in the red (-2.59% or $193). However, I am pretty happy being a WMT shareholder because it has a track record of dividend growth and it pays dividend in January, April, June and September when my dividend income is thinner.

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「Recent Buy – WMT」への2件のフィードバック

  1. Nice purchase. I would’nt worry abut having the shares assigned and buying above market value. WMT is a buy an hold stock, so just wait it out and the price will go up. Also since you sold a PUT, you probably made money on the PUT sale ,so maybe your losses are less than posted. Lastly, now that you own 100 shares, you can sell covered Calls to make back any loses. Nice buy.

    いいね

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