Stock Analysis

Walmart (NYSE:WMT) Announces 13 Percent Dividend Increase And Reports US$19 Billion Net Income

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Walmart (NYSE:WMT) has experienced significant developments recently, which include a 13% annual dividend increase and strong earnings growth for the fiscal year 2025, with sales up to $675 billion and net income rising to $19.4 billion. These positive financial results and shareholder-friendly policies may have played a role in Walmart's 7.49% share price increase in the last quarter. Additionally, the company's expansion efforts, such as the launch of a new sustainable home office campus, and partnerships aimed at enhancing customer experience, like with California Water Service and Nexamp, could have bolstered investor confidence. Despite a generally flat market performance, Walmart's robust growth contrasts with broader market trends, particularly as major indexes like the Dow and Nasdaq saw declines amid pressures on health insurers like UnitedHealth. As the S&P 500 struggled, Walmart's solid financial and strategic positioning may have contributed to its resilience and stock appreciation.

Click to explore a detailed breakdown of our findings on Walmart.

NYSE:WMT Earnings Per Share Growth as at Feb 2025

The past five years have seen Walmart's total shareholder returns soar by 184.72%, a testament to its solid operational foundation and strategic initiatives. A key driver behind this impressive growth is the company's consistent earnings performance, highlighted by substantial increases in net income and revenue in recent earnings reports. For instance, the full-year result for January 2025 reported net income of US$19.44 billion, up from US$15.51 billion the previous year. Additionally, the company's efforts in expanding its solar energy projects through its partnership with Nexamp have enhanced its sustainability profile, likely appealing to environmentally-conscious investors.

Moreover, Walmart's foray into e-commerce has broadened its market reach significantly, as seen with the inclusion of products like HandsFree Health's WellBe smart speaker on its platform. The dividend increase announced in early 2025 further solidifies Walmart's commitment to returning value to shareholders. These factors, coupled with the performance that exceeded both the US Consumer Retailing industry and the broader market over the past year, likely contributed to the company's strong shareholder returns over the longer term.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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