Wal-Mart Stores, Inc. (WMT) Has a Truly Amazing Story! – Target Corporation (TGT), Costco Wholesale Corporation (COST)

Costco is another successful discount retailer that competes with both Wal-Mart Stores, Inc. (NYSE:WMT) and Target.  Costco has had solid growth in sales and earnings since the financial crisis, and even better share price performance. The stock has increased more than 70% since the beginning of 2010. Costco’s net sales and net income have grown 8% and 7.7%, respectively, over the last four years.  Costco brought in more than $100 billion in sales over the past year.

Both Target and Costco are great businesses, but as you can see, their numbers pale in comparison to Wal-Mart’s.  Not only does Wal-Mart do more sales than both of these companies, but you could add the total sales from Target, Costco, Sears, and Kroger, and still not equal Wal-Mart’s annual sales.

Wal-Mart’s Stellar Shareholder Friendliness

If all that weren’t enough, the company is one of the most shareholder-friendly stocks in existence.  In 2012, the company paid returned $13 billion to shareholders in the form of dividends and share buybacks.  Furthermore, in conjunction with the quarterly and full-year results, Wal-Mart Stores, Inc. (NYSE:WMT) announced it will increase its fiscal 2014 dividend by 18%.  Wal-Mart has increased its dividend every year since the first declared dividend of $0.05 per share in March 1974.  The dividend has doubled over the past five years.

Based on Wal-Mart’s fiscal 2013 results of $5.02 in earnings per share, the stock trades for slightly more than 14 times.  In addition, the company expects fiscal 2014 profits to be in a range of $5.20 per share to $5.40 per share, meaning the stock trades at 13.5 times the midpoint of next year’s expected earnings.  With a gigantic business, shareholder friendly management, and a modest valuation, if you’re considering investing in American business, Wal-Mart should be on your watch list.

The article This Retailer Has a Truly Amazing Story! originally appeared on Fool.com and is written by Robert Ciura.

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