Wal-Mart Stores, Inc. (NYSE: WMT) is a member of our own 2012 Model Dividend Portfolio and now we are again seeing why that is. The stock chart has been in trouble since its last earnings warning, but Wal-Mart is trying to compensate with yet another raised dividend rate.
The new annualized dividend will be $1.59 per share, which represents a 9% hike to the payout from the previous rate of $1.46 per share on an annualized basis. The new rate will be paid to shareholders in four quarterly payments of $0.3975 per share.
Shares closed at $59.08 on Wednesday and the shares are indicated up almost 1% around $59.60. At the new price of $59.60, the prior yield was 2.45%. The new rate is now going to be 2.66%.
This might not be a huge yield for a DJIA component but this is a high yield compared to many retail names out there. By the way, go ahead and expect another dividend hike in a year from now.
Wal-Mart’s 52-week trading range is $48.31 to $62.63 and Thomson Reuters has a consensus price target of $63.74.
JON C. OGG