Wal-Mart Stores Inc. (NYSE: WMT) already gave stronger sales than most this morning, but the company is doing another shareholder friendly initiative that is far better than a stock buyback:
- It is hiking its quarterly dividend to investors. The prior $0.88 dividend per year that was paid out at $0.22 per quarter is now being jacked up to $0.95 per year that will be paid out as $0.2375 per quarter.
Raising a dividend is never a bad thing. Without trying to sound like a greedy kid who didn’t get the proverbial G.I. Joe with the kung-fu grip, this is still a pretty low yield for a DJIA component. With a $50.00+ opening price this morning that puts the dividend yield at roughly 1.9%. This is still a much higher yield than many other dividends from competing retailers, so don’t take the comments above as being too harsh of criticism because it is still better than peers.
Jon C. Ogg
March 6, 2008