5 Best Quality Dividend Stocks to Buy According to Reddit

Page 5 of 5

1. Walmart Inc. (NASDAQ:WMT)

Number of Hedge Fund Holders: 114

Walmart Inc. (NASDAQ:WMT) is already the largest retailer in the world. Its scale and reach have also made it the second-largest online retailer in the United States. E-commerce sales are growing at a solid pace. Still, that is not the most interesting part of the story right now. Advertising is starting to play a much bigger role in the company’s earnings.

Most of Walmart’s ad revenue comes from third-party sellers. These sellers pay to show up in search results on Walmart’s online marketplace. On the surface, the numbers may not stand out. The company generated $6.4 billion in global ad revenue in fiscal 2026. That figure grew 46%, but it remains small compared to the total net revenue of $713.2 billion.

The margins, however, tell a different story. Digital ads carry very high margins because placing a search result costs very little. Even a modest increase in ad revenue can have a noticeable impact on profitability, especially for a retailer that operates on thin margins. In the fourth quarter of fiscal 2026, ad revenue and Walmart+ membership fees together made up about one-third of operating profit.

Seen in that light, a 46% increase in ad revenue starts to matter more. If that growth continues, advertising could become a meaningful profit driver for Walmart Inc. (NASDAQ:WMT) over the next few years.

While we acknowledge the potential of WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best May Dividend Stocks to Buy and 10 Best Dividend Stocks Yielding at Least 7% According to Hedge Funds

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5