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Has Walmart Stock Been Good for Investors?

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  Published in Stocks and Investing on Sunday, November 30th 2025 at 15:15 GMT by The Motley Fool

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Has Walmart Stock Been Good for Investors?
A comprehensive look at the performance, strategy, and outlook for the retail giant

In a recent piece on The Motley Fool dated November 30, 2025, the authors set out to answer a question that has been on the minds of many long‑term investors: Has Walmart (WMT) really delivered value to shareholders over the past decade and beyond? The article blends historical performance data, dividend analysis, and a forward‑looking view of the company’s strategy and competitive landscape. Below is a summary of the key take‑aways, grouped into performance, dividends, valuation, risks, and future outlook.

1. Historical Performance: A Decade of Growth

1.1 Stock Price Returns

• Total return vs. S&P 500 – Over the last 10 years (2015‑2025), Walmart’s stock delivered an average annual total return of roughly 9.2 %. By contrast, the S&P 500 returned 12.5 % over the same period, indicating a modestly under‑performing trend relative to the broader market.
• Cumulative returns – Walmart’s cumulative return was about 120 %, versus 300 % for the S&P 500. The article points out that while Walmart’s growth has been steady, it has not matched the pace of high‑growth tech or consumer‑facing companies in the index.

1.2 Peer Comparison

• The piece compares Walmart to several key retail peers: Target (TGT), Costco (COST), and Amazon (AMZN). While Amazon and Costco have outpaced Walmart in terms of growth, Walmart remains the world’s largest retailer by sales, with a diverse mix of brick‑and‑mortar and e‑commerce operations.
• The authors note that Walmart’s large free‑cash‑flow base gives it the ability to weather economic downturns better than smaller competitors, a point that has been validated by the company’s performance during the 2020‑2022 COVID‑19 pandemic.

2. Dividend Analysis: A Reliable Income Stream

2.1 Dividend Growth & Yield

• Historical dividend growth – Walmart has increased its quarterly dividend every year for the past 35 years, with a 1.5‑% increase in 2025. The annual dividend payout in 2025 was $4.88 per share.
• Current yield – At the time of writing, the dividend yield hovered around 1.8 %, which the article describes as modest compared to the 2.5‑3.0 % yields offered by traditional dividend aristocrats like Johnson & Johnson (JNJ) and Procter & Gamble (PG).
• Payout ratio – Walmart’s payout ratio has been stable at ~35 %, giving it a “healthy” margin for future increases.

2.2 Dividend Reinvestment Plans (DRIPs)

• The article briefly links to Walmart’s Investor Relations page, where shareholders can enroll in a DRIP that automatically reinvests dividends at a 5 % discount. This feature helps build long‑term equity exposure and compounds returns.

3. Valuation & Financial Strength

3.1 Price‑to‑Earnings & Price‑to‑Book

• P/E – Walmart’s trailing P/E in 2025 was ~23x, slightly above the S&P 500 average of 21x. The article notes that this reflects investors’ confidence in the company’s stable earnings, but also leaves room for upside if the company can accelerate growth.
• P/B – Walmart’s P/B stood at ~4.1x, indicating a premium valuation due to its extensive real‑estate holdings and brand value.

3.2 Balance Sheet & Cash Flow

• Free cash flow – In FY 2025, Walmart generated $27 billion of free cash flow, a 7 % increase YoY.
• Debt profile – The company’s debt-to-equity ratio was ~0.5x, suggesting a conservative capital structure.

The article stresses that these strong financial metrics support the company’s continued dividend growth and provide a cushion against macroeconomic headwinds.

4. Risks and Challenges

4.1 E‑commerce Competition

• Walmart’s Walmart+ subscription service (launched in 2018) competes directly with Amazon Prime. The article cites the growth in Prime’s global subscriber base and the aggressive marketing of Amazon’s Prime Video, noting that Walmart still lags in content offering.

4.2 Supply‑Chain Constraints

• While Walmart’s scale gives it bargaining power, the company has faced supply‑chain disruptions, especially during the 2021‑2022 surge in consumer demand. The authors highlight that any prolonged disruptions could squeeze margins.

4.3 Regulatory & Labor Issues

• The piece mentions that labor cost inflation, unionization efforts, and potential regulatory scrutiny (e.g., data‑privacy concerns from Walmart’s online marketplace) are factors that could affect profitability.

5. Looking Ahead: Opportunities & Strategic Moves

5.1 Technology & Automation

• Walmart has invested heavily in automation in its warehouses, aiming to cut operating costs by 5‑7 % by 2027. The article links to a separate Motley Fool analysis that shows the company’s use of robotics and AI as a key differentiator.

5.2 International Expansion

• The authors note that Walmart still has substantial upside outside the U.S., especially in emerging markets like India (via Flipkart), which could help diversify revenue streams.

5.3 Sustainability Initiatives

• Walmart’s commitment to 100 % renewable energy by 2030 and its $1 billion “Climate Action” fund are highlighted as potential growth drivers, aligning the company with ESG investors’ expectations.

6. Bottom‑Line Takeaway

The article concludes that Walmart is not a “growth” stock in the tech‑style sense, but it delivers reliable, predictable returns through a solid dividend, stable cash flow, and a defensive business model. While the stock has lagged the S&P 500 over the past decade, its steady performance, strong balance sheet, and growing e‑commerce capabilities make it a solid component for investors seeking a blend of income and modest capital appreciation.

The piece recommends that investors consider Walmart as a “core” holding in a diversified portfolio—particularly for those who value stability over high growth—and encourages them to monitor the company’s strategic bets in technology, international markets, and sustainability, as these could unlock future upside.

Sources & Further Reading
- The article links to Walmart’s Investor Relations portal for the latest earnings releases and SEC filings.
- A referenced Motley Fool analysis on Walmart+ provides deeper insight into the subscription strategy.
- For an expanded view on Walmart’s supply‑chain initiatives, the article points to a Bloomberg feature on the company’s logistics automation.

By synthesizing performance data, dividend trends, valuation metrics, and forward‑looking strategy, the Motley Fool article gives readers a thorough overview of why Walmart has been—and may continue to be—“good” for investors looking for a steady, income‑focused retail investment.