Walmart: A Most Agreeable Dividend Tale

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It occurred, you see, with a distinct lack of fuss – rather like a particularly quiet aunt slipping away to the Continent. Earlier this month, the estimable retailer Walmart (WMT 0.62%) joined the ranks of the trillion-dollar market cap clubs, a rather exclusive gathering, if I may say so. Only eleven companies boast such a sum, and Walmart took a good sixty-four years to arrive at the party, which is, shall we say, a bit of a dawdle compared to some of the younger set.

Still, one mustn’t grumble. It’s all rather spiffing, really.

This naturally prompts the question: just how rewarding has a spot of investment in this brick-and-mortar behemoth been for those with the patience of Job? Allow me to illuminate the matter.

The Sort of Growth One Might Expect From a Company of Substance

Old Sam Walton opened the very first Walmart shop back in 1962, a modest affair, no doubt. But it wasn’t until eight years later that the company decided to venture onto the public markets. By 1970, when the initial public offering took place, Walmart was operating a mere thirty-eight stores, collectively raking in forty-four million dollars annually. Two years on, with fifty-one stores under its belt, the retailer’s revenue had swelled to nearly eighty million dollars, a decidedly cheerful progression.

But that was merely a prelude, you understand. Today, the company presides over a staggering ten thousand eight hundred locations, including three thousand five hundred sixty-six Walmart supercenters and six hundred and one Sam’s Clubs, all within the United States alone. Last year, the firm conducted seven hundred and thirteen point two billion dollars’ worth of business, with nearly twenty percent of that originating from outside the United States, thanks to a spot of international expansion in the mid-1990s. A rather healthy state of affairs, wouldn’t you agree?

Excellent, but what does all this mean for the chap who put a few shillings on the horse, so to speak?

The stock has endured several splits since its initial issuance in 1970. A modest investment of one hundred shares back then would now translate to six hundred and fourteen thousand four hundred shares. To put it another way, adjusting for all those splits, Walmart stock’s price at its public offering would be a paltry 0.002686 dollars, a mere fraction of its current price near 125 dollars. A most agreeable transformation, if I may say so.

Perhaps the most illuminating way to illustrate this company’s growth, however, would be with some relatable figures. So, a thousand-dollar investment in Walmart at its 1970 IPO would now be worth a little over forty-seven million dollars. Rather astonishing, wouldn’t you say? And that doesn’t even factor in the dividends, which, of course, would plump this position up to something exceeding seventy million dollars. A dividend hunter, such as myself, finds this exceptionally pleasing.

Pick Smart, and Be Patient, What!

With the exception of a handful of the older Walton family members – a resourceful bunch, I gather – it’s unlikely any investor actually held onto their position for the entirety of the stock’s fifty-six-year existence. Though, one should never say never. A long-term view, you see, is the key to a comfortable retirement.

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Nevertheless, it serves as a testament to the power of patience and sticking with a proven winner when the underlying company has discovered the right formula for sustained success. While it would be shortsighted to ignore how several other retailers were also telling compelling growth stories during this stretch—Radio Shack, K-Mart, and Service Merchandise, just to name a few—those tales obviously didn’t pan out. Even losing your entire investment on those names would have been more than offset by holding on to a stake in the one company that ultimately caused their demise. A lesson, perhaps, in discerning quality.

Just don’t expect this same sort of growth from Walmart over the course of the coming fifty-six years. Most of this mega-retailer’s expansion opportunity has already been tapped. One wants to keep one’s eyes peeled for the next Walmart-like company, which is likely to be something outside of the crowded brick-and-mortar retail arena. A clever investor, you see, is always on the lookout for the next big thing. And, naturally, a generous dividend yield is always a welcome sight.

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2026-02-26 23:03