In case, you have been thinking of investing in Walmart Stocks, you should be aware of the pros and cons associated with investing in the company. Let us look at Walmart stock in order to start thinking about pros and cons of investing in one renowned company.
Walmart has constantly enhanced its dividends for more than 40 years. They have even doubled in some periods. Although the growth might not always live up to the expectations, but the constant pattern would indicate stability.
The payout ratios of Walmart have followed a consistent pattern. Moreover, they have been still on the rise. Actually, they have been following a similar pattern as their dividends. When looking back at Walmart’s stock, you could see that payouts seem to go up, even if it goes up slightly. You could also see that they have constantly paid out for several years. Walmart would serve 250 million customers weekly in approximately 27 countries. It has experienced around 30% growth in its earnings per share from financial year 2010 through financial year 2014.
During some years, Walmart lost ground in its payout ratio. However, recently Walmart has been challenged for maintaining its profit margins. Moreover, its record of strong growth has slipped.
Whether you select Walmart or any other brand name stock for the purpose of investment, you should remember that when buying a stock, you would be buying business. You need to examine that business similar to purchasing the entire thing. You need to consider whether they have been innovative and developing or producing new products that would be in demand in future. You should be prepared to pay more for business that aims to meet a higher standard of performance as compared to others. However, you should know that you might be reaping a greater dividend or payout.