Walmart Inc. (NYSE:WMT) was trading at $154.33 on Dec. 1. The American retail company has a market capitalization of $415.3 billion. In comparison to the stock's preceding 52-week price range of $136.09 to $169.94, the current price is just above the halfway mark.
Walmart's dividend payout is $2.28 with a yield of 1.46%. The annualized dividend is split in four equal installments of $0.57 per share payable every quarter. The company paid $4.61 billion in the initial three quarters of 2023 as scheduled. The record date for the final dividend payment is Dec. 8 and is payable on Jan. 2.
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How Can You Earn $500 Per Month As A Walmart Investor?
If you want to make $500 per month — $6,000 annually — from Walmart dividends, your investment value needs to be approximately $410,959, which is 2,663 shares at $154.33 each. Alternatively, if you want to earn $100 per month, your investment value drops to $82,192 or 533 shares.
How to estimate investment value with dividend yield: When estimating your investment value, two key variables play a crucial role: the desired annual income — $6,000 or $1,200 in this case — and the dividend yield. You can calculate the dividend yield by dividing the annual dividend payments by the market price of the stock.
So, $6,000 / 0.0146 = $410,959 to generate an income of $500 per month and $1,200 / 0.0146 = $82,192 for $100 per month.
The dividend yield can change over time. This is the outcome of the constant changes in stock prices and dividend policies of the company.
For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40).
Just like a change in stock price affects the yield, changes in the dividend payment can also impact the yield. Assuming the stock price remains the same, the dividend yield will increase when the company increases the dividend value and vice versa.
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