Prediction: Walmart’s Dividend Payouts Will Increase in 2025

24/7 Wall St. Insights Stocks that consistently raise their dividends offer investors huge total return potential. Dividend stocks will become more popular as interest rates decline. Explore this free report today: Access 2 legendary, high-yield dividend stocks Wall Street loves.…

Published August 11, 2024, 9:20am ET · 3 min read

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An eye-level shot of a Walmart store exterior at dusk. The building features a large, prominent blue facade with the white 'Walmart' logo and a yellow spark emblem. The store's entrance, featuring automatic glass doors, is brightly lit, showing products inside. In the foreground, a black car is parked to the right, and a white car is further left, with several blurred figures walking in front of it. A pale blue sky is visible above the building, and trees line the horizon on the left.
The exterior of a Walmart store at dusk, symbolizing the company's continuous operation and strong positioning as consumers prioritize value. This visual reinforces Walmart's defensive market appeal highlighted in the financial article. © YvanDube / Getty Images

24/7 Wall St. Insights

Dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.

One critical aspect for growth and income investors when selecting stocks for their portfolios is the safety and security of a company’s dividend and the prospect of the dividend being increased on a regular basis. We decided to screen top blue-chip companies, looking for those that will be increasing their dividends not only this year but beyond.

Many of the companies we examined are proud members of the Dividend Aristocrats and the Dividend Kings. We have covered both of these groups for years here at 24/7 Wall St. The Dividend Aristocrats have raised their dividends for 25 consecutive years, while the Dividend Kings for 50 years or more. Dividend investors should grab this free report today.

Why do we cover dividend stocks?

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Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. That makes it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Walmart paid its first dividend 50 years ago

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The very first dividend for Walmart Inc. (NYSE: WMT | WMT Price Prediction) shareholders was declared in March of 1974 and the annual dividend was a small $0.05 per share. 

We predict Walmart’s dividend payout will increase in 2025

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Walmart has increased its dividend every year since 1975, and as of February 2024, it had raised its dividends for 51 consecutive years. This makes Walmart a Dividend King and a Dividend Aristocrat. Walmart currently makes quarterly dividend payments.

Walmart stock split in 2024

Walmart store

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Its stock split on February 26, 2024, after announcing the split on January 30, 2024. This was the first time in over 20 years that Walmart split its stock, with the previous split coming in 1999. The split was a 3-for-1, which increased the outstanding shares from 2.7 billion to 8.1 billion. With the split, the dividend per share was reduced to match the increase in shares. 

The future is bright for Walmart shareholders

Walmart store

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Walmart shareholders currently receive $0.83 per share annually, which translates to a 1.19% dividend. This return of capital to shareholders added to the strong gains in the stock price over the last 10 years has been a total return home run for investors. On a split-adjusted basis, the shares are up a stunning 268% since July of 2014.

According to the latest long-term Wall Street and analytical forecasts and posted data, Walmart’s price could hit $90 by the end of 2024 and rise to $125 by the end of 2025. Massive gains for investors in a very conservative investment.

The Single Best Dividend Stock Yielding Over 12%

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Lee Jackson

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.

Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.

Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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