Sure Dividend

Updated on July 9th, 2025 By Felix Martinez

The Dividend Kings are a select group of stocks that have increased their dividends for at least 50 consecutive years. We believe the Dividend Kings are among the highest-quality dividend growth stocks to buy and hold for the long term.

With this in mind, we created a full list of all the Dividend Kings. You can download the full list, along with important financial metrics such as dividend yields and price-to-earnings ratios, by clicking the link below:

Click here to instantly download your free spreadsheet of all Dividend Kings now, along with important investing metrics.

Walmart Inc. (WMT) is a Dividend King and an American retail giant.

In 1974, Walmart paid its initial dividend of $0.05 per share, which has been raised annually for 52 consecutive years, making it a Dividend King. Recently, various retailers have faced challenges due to competition from internet retail, spearheaded by Amazon (AMZN).

Nevertheless, by adapting, Walmart has demonstrated its ability to thrive in a rapidly changing environment. The company has made substantial investments in its e-commerce platform. Unlike many other retailers, Walmart has shown its ability to compete with Amazon.

This article will provide an overview of the company’s business, its growth prospects, competitive advantages, and expected returns.

Business Overview

In 1945, Sam Walton opened his first discount store, marking the beginning of what would later become Walmart. Since then, Walmart has expanded to become the world’s largest retailer, serving over 230 million customers each week. The company’s revenue exceeded $680 billion in 2024, and its market capitalization is approximately $774 billion.

As one of the most prominent employers globally, Walmart has a workforce of about 2.1 million.

Source: Investor Presentation

Walmart has also expanded into a variety of different services, making it a true conglomerate. The Walmart U.S. segment includes retail stores in all 50 U.S. states, Washington, D.C., and Puerto Rico, as well as Walmart’s digital business. Walmart International consists of operations in 18 countries outside the U.S.

Lastly, Sam’s Club is a membership-only warehouse club that operates in 48 states and Puerto Rico.

Growth Prospects

Source: Investor Presentation

Following the Q1 results, we updated our earnings per share estimate to $2.60. We currently forecast that Walmart will grow its earnings per share by 11% annually over the next five years.

Competitive Advantages & Recession Performance

Walmart’s primary competitive advantage is its extensive scale, enabling it to maintain low transportation costs and high distribution efficiencies. Consequently, the company can pass these savings to customers at affordable prices, contributing to its everyday low-price strategy.

Advertising is another strength of Walmart that helps maintain its brand recognition. The company’s vast financial resources allow it to invest billions of dollars yearly in advertising.

Moreover, Walmart’s competitive advantage ensures consistent profitability, even during economic recessions. The company performed remarkably well during the Great Recession, highlighting the resilience of its business model.

It steadily grew earnings per share each year in that time:

• 2007 earnings-per-share of $3.16
• 2008 earnings-per-share of $3.42 (8.2% increase)
• 2009 earnings-per-share of $3.66 (7% increase)
• 2010 earnings-per-share of $4.07 (11% increase)

Despite the economic recession being one of the most severe in decades, Walmart’s performance was commendable. The company delivered robust results even during the coronavirus pandemic, which led to a recession in the U.S.

Walmart’s growth trajectory suggests that the company may be able to capitalize on recessions. As a retail leader offering low-cost products, Walmart may experience a surge in traffic during economic downturns, as consumers shift away from pricier retailers.

Valuation & Expected Total Returns

Walmart shares currently trade at a price of ~$96. Using our earnings-per-share estimate of $2.60 for the current fiscal year, the stock has a price-to-earnings ratio of 36.9x. This is above our fair value estimate P/E ratio of 25x. Investors should also note that retailers have typically not held P/E multiples above 20.

If the valuation multiple were to revert to our fair value estimate over the next five years, the company’s total returns would decline by 7.5% per year. Walmart shares have performed well for an extended period. While this has rewarded shareholders with strong returns, we view Walmart as a slightly overvalued stock.

Aside from changes in the P/E multiple, Walmart should also generate returns from earnings growth and dividends. A projection of expected returns is below:

• 11% earnings-per-share growth
• 1.0% dividend yield
• -7.5% multiple reversion

In this scenario, Walmart is projected to generate a total annual return of 4.5% over the next five years.

Final Thoughts

While many retailers have struggled to adapt to changes in shopping habits, Walmart has made the necessary strategic investments. The company’s impressive e-commerce growth reflects this view.

The company has performed well. We find the company’s dividend track record to be impressive, with the most recent dividend hikes of 13%.

Walmart is a safe and defensive stock in times of economic hardship, but its modest total return profile prevents it from being a buy today. As a result, we rate it a hold.

Additional Reading

The following databases of stocks contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors.

• • The Dividend Aristocrats List: S&P 500 stocks with 25+ years of dividend increases.
  • The High Yield Dividend Aristocrats List is comprised of the 20 Dividend Aristocrats with the highest current yields.
  • The Dividend Achievers List is comprised of ~350 stocks with 10+ years of consecutive dividend increases.
  • The High Yield Dividend Kings List is comprised of the 20 Dividend Kings with the highest current yields.
  • The Blue Chip Stocks List: stocks that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings
  • The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
  • The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.
  • The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.
    Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500.
  • The Dividend Contenders List: 10-24 consecutive years of dividend increases.
  • The Dividend Challengers List: 5-9 consecutive years of dividend increases.
  • The Best DRIP Stocks: The top 15 Dividend Aristocrats with no-fee dividend reinvestment plans.
  • The High ROIC Stocks List: The top 10 stocks with high returns on invested capital.
  • The High Beta Stocks List: The 100 stocks in the S&P 500 Index with the highest beta.
  • The Low Beta Stocks List: The 100 stocks in the S&P 500 Index with the lowest beta.
  • The Complete List of Russell 2000 Stocks
  • The Complete List of NASDAQ-100 Stocks