Walmart has had a good time lately and even the last year which was an unstable year because of the coronavirus pandemic went quite well for the company. Walmart currently stands in competition with Amazon because of the similarity in their businesses. The major similarity came about when Walmart launched its Walmart+ which is similar to Amazon’s Amazon Prime and this is how both the firms stand against each other in a tough competition in the same field.
Another plus point of Walmart is that it has a consistently increasing dividend. Although the stocks with dividends are sometimes risky for investing when it comes to those companies which have increased their dividend without fail, an investment there would not bring about losses. Walmart along with Walmart+ is also developing Walmart Health. The company is expanding its business in different fields to earn profits from everywhere and make the company stronger than before.
Walmart Inc. (NYSE: WMT)
- 52 Week Range: $102.00 – $153.66
- Average Volume: 7,616,816
- Market Capital: $413.416B
- Forward Dividend and Yield: 16 (1.49%)
The company presently gives a good dividend and yield to its shareholders and there is a very high chance that the dividend will only go towards the side of increment. The company stands strong even against the e-commerce giant Amazon and that is something very great for the firm. Every year, Walmart+ costs $98 (monthly $12.95 and also comes with a free trial for 15 days) whereas Amazon Prime costs $119 (monthly $12.99).
Covid-19 worked in favor of Walmart. It was already growing at a steady pace but the pandemic somehow helped in accelerating its growth and helped it launch better programs. The expansion of Walmart is making it’s stock a better buy for the investors (much better if the investment is done on a long-term basis).
Walmart; is it a good Buy or Not?
Analysts have a varied view on the purchase of Walmart stock. It looks like a good buy but not all the analysts are sure that it will give very good profits. Although one thing is for sure that it is not an investment that will yield losses but it is also not an investment that will bring in huge profits. Therefore, it is completely dependent on the shareholders that how they want to invest their money. The investors can also explore better options that come under the same price with better dividends. The good thing about investment in Walmart is the stability that it offers in the highly volatile stock market. Even if it will not give hefty profits, it will also not let the money go into loss. This works well for those who want their money to grow slowly and steadily. Hence, in the case of Walmart, the investors should be sure about the kind of investment they want to make.