Acquisition WMT

Wall-Mart-LogoSo, it is a brand new month of September and Mr. Market has continued its cheerless mood. The stocks are still down for the year, which causes a question, can Mr. Market become happy again? Thankfully, I am not in the speculation type of investment strategy of buying low and selling high. Actually, I like when Mr. Market is happy as well as sad, this is because when he is happy I see my total investment portfolio rise, and when he is sad, boy does it mean that he is punishing a lot of companies, which only means to dig in and buy baby buy.

This recent acquisition I decided to go with Wal-Mart Stores, Inc (WMT). This dividend aristocrat has increased its annual cash dividend payouts since 1974. It is also coming up on a dividend raise here in the next quarter. I am pretty happy to snatch it up at 2012 price levels which is close to 52 week lows.

Founded in 1945, Wal-Mart Stores Inc. is an multinational retail corporation that owns and operates discount and wholesale department stores worldwide. It operates through three different segments: Walmart U.S., Walmart International and Sams Club. The company offers  a huge diversified variety of merchandise and services through many different sectors. Its main philosophy includes having a very competitive product pricing model. Currently, it operates more than 11,462 stores in 27 different countries and e-commerece Websites in 11 countries. Walmart is the largest private employer in the world.

  • Dividend Yield: 3%
  • 3 Year Dividend Growth Rate: 11%
  • Payout Ratio: 42.7%
  • P/E: 13.8
  • Consecutive Years of Dividend Raises: 40

I purchased 16 shares of WMT for the price of $64.70 adding $31.36 to my annual dividend income.

This is the 9th time I am initiating a stock acquisition this year. This transaction is my initial purchase of WMT into the portfolio. Furthermore, the acquisition of WMT makes it the 33rd company I am invested in. Currently, WMT ownership stake represents to be around 1.6% of my current portfolio value.

The 12-month dividend income increased to $2,449.

Thank you for reading & have a great day!

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8 Comments

  1. Captain Dividend on September 10, 2015 at 18:35

    Walmart is one of those stocks I’d like to buy here but I only have so much money sadly. Good pickup DV

    • DividendVet on September 10, 2015 at 21:54

      Yeah, same here. There are so many companies at ridiculous valuations right it is not even funny. It’s ok though, slow and steady.

  2. Dividend for Starters on September 14, 2015 at 03:45

    Hey DV,

    Great purchase. I’m definitely with Captain Dividend on this.
    Congrats on your average $200/mo of passive income. That’s an amazing milestone!

    Keep up the good work and Mr. Market will do the rest 🙂

    Have a nice day, DfS

    • DividendVet on September 14, 2015 at 16:41

      Glad you and Captain like the buy and hopefully Mr. Market continues his gloomy state for just a little bit more so I can buy some more. 🙂

      Thanks for stopping by

  3. DivGuy on September 15, 2015 at 13:42

    Like this stock too! And couldn’t agree more with your market philosophy. Happy and sad both bring nice things our way!

    Cheers,

    Mike

    • DividendVet on September 15, 2015 at 14:47

      Thanks. Absolutely, the stock market is a very powerful wealth distribution tool in our society. Think about it, you buy those simple computerized digits called shares and company magically send you money for being an owner. Freaking awesome!!! Therefore this is why DGI is so powerful, it has a positive correlation for the investor when the market goes either way. Simple as that. That is why in essence, I love it when it goes down because I buy more discounted assets, which will bring more dividend for less and I love it when the value of the assets grows, without any sort of selling. Magic!

  4. Dividend Growth Journey on September 18, 2015 at 09:12

    Great purchase at this great price. I have been adding WMT though my weekly purchases and have been adding it throughout its fall from 80s to 60s. I am on the red on the stock, but looking to add more here and there at these multi year low prices.

    • DividendVet on September 18, 2015 at 20:54

      Thanks, when opportunity shows why not right? It’s like having a time machine, snapping up WMT shares at 2012 levels works for me.

      Good hearing from you!

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