O Back in late
2005, Wal-Mart paid
out $0.60 per share
O At the time, that
million per year in
O Fast forward to
today, and Wal-Mart
pays out $1.92 in
dividends per year.
O That means
collect $111 million
in dividends alone
this year from Wal-
The Best Part About the
O Over the past 12 months, Wal-Mart has
brought in $12 billion in free cash flow.
O At the same time, it has paid out just $6.1
billion in dividends.
O That means Wal-Mart is only using about
half of its free cash flow to pay its
O Wal-Mart’s payout, therefore, is both
sustainable, and has lots of room for
But That’s Not All…
O Wal-Mart has also been using its excess
cash to buy back shares of the company.
O This lowers the number of shares
outstanding, which gives each
shareholder more value.
O During 2013 alone, the company bought
back 89 million shares, reducing the
number of shares outstanding by 3%.
Since 2005, This Has Reduced
the Number of Shares by 24%
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