Wal-Mart's Dividend Offers High Growth At Everyday Low Prices
By Mike Young:
Wal-Mart (WMT) has increased its dividend every year since the first declared dividend in March 1974. Furthermore, the compounded annual growth rate of the dividend was almost 20% over the past decade. So clearly Wal-Mart has been a consistent dividend growth stock for years.
Below are Wal-Mart's historical dividends and growth rates for the past 10 years:
Year
Dividend
Dividend Growth
2002
$0.3
--
2003
$0.35
17%
2004
$0.48
37%
2005
$0.58
21%
2006
$0.65
12%
2007
$0.83
28%
2008
$0.93
12%
2009
$1.06
14%
2010
$1.21
14%
2011
$1.46
21%
Wal-Mart has been able to grow its free cash flow per share at an impressive rate over the same time period. In fact, the company was able to increase FCF per share every year, including 2008 and 2009, throughout the entire past decade. And over the past 5 years, Wal-Mart's FCF/share grew at ~9.5% compounded average growth rate.
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