The Unstoppable Rise of Walmart: A Half-Century of Growth
Walmart, the retail giant, has been a household name for decades. Since its humble beginnings in the early 1960s, the company has grown exponentially, with a successful initial public offering (IPO) in October 1970. For savvy investors who got in on the ground floor, the returns have been nothing short of remarkable.
A History of Stock Splits
Walmart has declared an impressive 12 stock splits since its IPO, with most being 2-for-1 splits, except for one notable 3-for-1 split in February. Each time a split occurred, the share count doubled or tripled, resulting in a staggering increase in shares for early investors. If you had purchased just one share during its early days as a public company, you would now own an astonishing 6,144 shares.
The Power of Compounding
While the share count increased, the price per share decreased proportionally. The original unadjusted split price of $16.50 would now be equivalent to a split-adjusted $0.0027 per share. However, the stock’s value has grown significantly over the years, with the company’s shares closing at $94.25 on December 13. Long-term investors have enjoyed a substantial gain, making Walmart a lucrative investment opportunity.
A Dividend King
Walmart has consistently rewarded its shareholders with dividend payments for over 50 years. The company’s first quarterly payout was in March 1974, and the board of directors has raised them annually since then. The current quarterly payout stands at $0.2075, representing a 9% increase from the previous year’s split-adjusted dividend. Walmart’s commitment to sharing its profits with investors has earned it the esteemed title of Dividend King.
A Simple yet Effective Business Plan
Walmart’s success can be attributed to its straightforward business strategy: keeping costs low and passing the savings on to customers. This approach has resonated with shoppers and proven highly profitable for the company. With its everyday low prices, competitors struggle to undercut Walmart, making it an attractive investment opportunity for patient shareholders.
Beyond Walmart: Unlocking Monster Returns
Before investing in Walmart, consider the expert analysis of The Motley Fool’s Stock Advisor team. They have identified 10 stocks with the potential to produce exceptional returns in the coming years. In the past, their recommendations have led to remarkable gains, such as Nvidia’s meteoric rise. By following their guidance, investors can build a successful portfolio and stay ahead of the curve.
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