24/7 Wall St. Insights
- Stocks that consistently raise their dividends offer investors huge total return potential.
- Dividend stocks will become more popular as interest rates decline.
- Explore this free report today: Access 2 legendary, high-yield dividend stocks Wall Street loves.
Dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.
For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.
One critical aspect for growth and income investors when selecting stocks for their portfolios is the safety and security of a company’s dividend and the prospect of the dividend being increased on a regular basis. We decided to screen top blue-chip companies, looking for those that will be increasing their dividends not only this year but beyond.
Many of the companies we examined are proud members of the Dividend Aristocrats and the Dividend Kings. We have covered both of these groups for years here at 24/7 Wall St. The Dividend Aristocrats have raised their dividends for 25 consecutive years, while the Dividend Kings for 50 years or more. Dividend investors should grab this free report today.
Why do we cover dividend stocks?
Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. That makes it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Walmart paid its first dividend 50 years ago
The very first dividend for Walmart Inc. (NYSE: WMT) shareholders was declared in March of 1974 and the annual dividend was a small $0.05 per share.
We predict Walmart’s dividend payout will increase in 2025
Walmart has increased its dividend every year since 1975, and as of February 2024, it had raised its dividends for 51 consecutive years. This makes Walmart a Dividend King and a Dividend Aristocrat. Walmart currently makes quarterly dividend payments.
Walmart stock split in 2024
Its stock split on February 26, 2024, after announcing the split on January 30, 2024. This was the first time in over 20 years that Walmart split its stock, with the previous split coming in 1999. The split was a 3-for-1, which increased the outstanding shares from 2.7 billion to 8.1 billion. With the split, the dividend per share was reduced to match the increase in shares.
The future is bright for Walmart shareholders
Walmart shareholders currently receive $0.83 per share annually, which translates to a 1.19% dividend. This return of capital to shareholders added to the strong gains in the stock price over the last 10 years has been a total return home run for investors. On a split-adjusted basis, the shares are up a stunning 268% since July of 2014.
According to the latest long-term Wall Street and analytical forecasts and posted data, Walmart’s price could hit $90 by the end of 2024 and rise to $125 by the end of 2025. Massive gains for investors in a very conservative investment.
The Single Best Dividend Stock Yielding Over 12%
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