Thursday, October 3, 2013

Stock Bought: WMT

On Tuesday I bought shares of Wal-Mart Stores (WMT), the largest retailer in the world by revenue. Some of my research is summarized in an article about WMT that was published today at Seeking Alpha.

I bought 25 shares of WMT at the price of $73.44 per share plus commission, giving me a 2.55% yield on cost. At the current dividend rate, I can expect to receive quarterly dividends of $11.75 from this purchase, which will add a total of $47.00 to my annual dividend income. My forward 12-month dividend total increases to $2,899. This purchase was made in my taxable account by combining new capital with accumulated dividends. (In fact, some of the dividends that I received on Tuesday were used for this purchase -- now that's rapid selective dividend reinvestment!) WMT becomes the 31st stock in my dividend growth portfolio.

October got off to a quick start on the investing front, with same-day purchases of WMT and XOM. Those purchases used up all the new capital I had just added to my accounts, so there will be no more purchases this month. I plan to sit back and watch as earnings roll in over the next few weeks.

4 comments:

  1. The growth is looking good!

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  2. I had a strong suspicion WMT was next in line for your portfolio. I may follow suit and pick up a few more shares this month as well. I view Walmart as an attractive business whose stock warrants a higher price. I like this company, might as well get in while the yield is nice. I'm also interested in one of their competitors however.

    Anyways I think I may check out the Walmart Neighborhood Market down the street because my usual grocery store is closed due to the government shutdown. I'm going to see what my passive income sources are offering while I'm forced to shop elsewhere.

    I think the government shut down is actually good for WMT, I wouldn't spend grocery $$ there otherwise. Walmart gained several million potential customers until the government starts back up.

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    1. CI: Thanks for your comment. I shop occasionally at my local Walmart, but usually just for a few household items. The selection is pretty good and the prices are reasonable. It is okay for some groceries (e.g., frozen foods), but the produce section is lousy, so I tend to do most of my grocery shopping elsewhere. Overall, it's a decent place to shop -- the store is clean, the shelves are usually well-stocked, and the employees are friendly -- which stands in contrast to the negative stories one hears all the time about Walmart.

      I am fortunate not to be directly affected by the government shutdown, but I really hope it gets resolved soon.

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