Wal-Mart Boosts Dividend; Adds Handle To Saucer Base
Wal-Mart ( WMT ), the world's largest retailer, offers everyday low prices for consumers. For investors, Wal-Mart offers rising dividends and a new base.
The Bentonville, Ark.-based firm seems like a poster child for an income stock. It's a big cap, it's a mature company. But it also sports steady top and bottom-line growth.
Wal-Mart is a member of the S&P 500 Dividend Aristocrats index, which tracks large-cap stocks that have paid increasing dividends for at least 25 years. The retail giant has that beat, as it has paid higher dividends each year since 1974.
Last month, the company raised its annualized dividend by 18% to $1.88 a share for fiscal 2014 from $1.59 a share. Its fiscal year runs from Feb. 1 to Jan. 31.
CEO and President Mike Duke noted in a press release that the 29-cent annual increase is one of the largest increases in company history.
Wal-Mart's dividend has more than doubled since 2007. It has a yield of about 2.6%, which is slightly more than that of the S&P 500. Wal-Mart has the biggest yield among six dividend-paying stocks in the Retail-Major Discount Chains group.
The company pays shareholder dividends in April, June, September and January.
Wal-Mart recently added a narrow handle to its saucer , giving a lower buy point at 74.23. Previously, the buy trigger was at 77.70, 10 cents above the left-side high.
The stock's base is a first-stage pattern, as it undercut the low of a flat base in November. The undercut resets the base count.
Wal-Mart has a Relative Price Strength Rating of 51. The low rating is typical for stocks in saucers due to the long time it takes for the pattern to form.