Core Viewpoint - Walmart (WMT) is highlighted as a top-rated dividend king for 2026, appealing for medium to long-term investment due to its stability and steady returns [1]. Company Overview - Walmart, headquartered in Bentonville, operates retail and wholesale stores through segments including Walmart U.S., Walmart International, and Sam's Club, with over 10,750 stores and a significant e-commerce presence [4]. - The company reported a revenue of $681 billion for FY25, indicating its strong market position [4]. Financial Performance - For Q3 2025, Walmart achieved a year-on-year revenue growth of 5.8%, totaling $179.5 billion, with a notable 27% increase in global e-commerce sales [6]. - Walmart U.S. reported a sales growth of 5.1%, while Walmart International saw a robust growth of 10.8%, driven by operations in India, Mexico, and China [7]. Dividend and Stock Performance - WMT stock has increased by 25% over the past 52 weeks, supported by strong results and positive growth guidance [5]. - The company offers an annualized dividend of 94 cents, with expectations for continued growth in dividends due to strong earnings [5]. Financial Health - Walmart ended Q3 with a cash buffer of $10.6 billion and an operating cash flow of $27.5 billion for the first nine months of FY25 [8]. - Despite a total debt of $53.1 billion, Walmart's credit metrics are expected to remain strong, with healthy free cash flows supporting sustained shareholder value creation [8].
The Top-Rated Dividend King to Buy for 2026