Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Wal-Mart Stores, Inc. (WMT): 50 Years of Stability, Dividends, and Growth

3). Increasing Revenue per Square Foot: Utilizing every square foot of every location the company possesses more efficiently is a very real opportunity for the company to streamline their business and improve margins

4). Market Share: Wal-Mart operates in an extremely competitive industry, and any gain in market share the company is able to obtain could fuel sales growth


1). Rising Input Prices: Wal-Mart prides itself on offering products for the lowest price, however when input prices rise, the company must choose to sacrifice margins or potentially lose customers


Major publicly traded competitors of Wal-Mart include Target Corporation (NYSE:TGT)Costco Wholesale Corporation (NASDAQ:COST)Dollar General Corp. (NYSE:DG), and Dollar Tree, Inc. (NASDAQ:DLTR). All of these companies operate in the discount retail industry and compete directly with Wal-Mart. Target is valued at $40.16 billion, pays out a dividend yielding 2.33%, and carries a price to earnings ratio of 13.67. Costco is valued at $44.51 billion, pays out a dividend yielding 1.08%, and carries a price to earnings ratio of 25.36. Dollar General is valued at $14.58 billion, does not pay out a dividend, and carries a price earnings ratio of 16.20. Dollar Tree is valued at $9.34 billion, does not pay out a dividend, and carries a price to earnings ratio of 16.54.

The Foolish Bottom Line:

Financially, Wal-Mart is an incredible company. The company possesses solid and steady revenue growth in all economic cycles, a rapidly expanding dividend, and a basement valuation. The only true weakness of the business is its debt load. Looking forward, Wal-Mart’s future is filled with fast-paced international expansion, and steady growth in the United States. All in all, Wal-Mart shares currently trade at a rock-bottom valuation, the company is of the finest caliber in terms of reliable revenue and dividend growth, and in the end is a tremendous investment for any long-term investor that will trounce the overall market for decades to come.

The article 50 Years of Stability, Dividends, and Growth originally appeared on and is written by Ryan Guenette.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.