How to Safely Increase Wal-Mart's Dividend

Brian Hicks

Posted September 26, 2012

Wal-Mart is about to do it again.

Yesterday, the retail giant came within $0.20 of making an all-time record high.

This past July, WMT made a record high of $75.24…

Yesterday it traded at a high of $75.04.

It’s safe to say that Wal-Mart will eventually reach new levels — and based on the chart alone, Wal-Mart will probably be in record territory within the next two weeks:

walmart_chart

If you’re keeping score at home, Wal-Mart is now up a mind-blowing 149,000% since going public back in 1972.

It’s up 25% year to date… and up almost 50% for the year.

When you look at the numbers, I don’t see any reason for Wal-Mart’s capital appreciation to end.

And the numbers are downright staggering…

In the past year, Wal-Mart has added 52 million square feet of retail space. That’s more than 1,000 units opened in the past year.

In total, Wal-Mart operates 10,130 retail units under 69 different names in 27 countries.

The company controls 1,037 billion square feet of retail space worldwide. In fact, Wal-Mart’s retail space is 56% bigger than Manhattan.

Wal-Mart logistics has the largest retail trucking fleet in the United States: 7,110 trucks, 55,761 trailers, and more than 7,000 drivers that go 700 million miles per year…

To put that into perspective, Wal-Mart trucks drive the equivalent of 1,465 round-trips to the moon (average earth/moon distance is 238,900 miles)…

Or 10 round trips to Mars when it is closest to Earth (distance of 33,926,856 miles)…

Or 1.8 one-way trips to Jupiter when it’s closest to Earth (distance of 391,000,000 miles).

Wal-Mart’s workforce is huge: 2.2 million employees — and growing daily.

In fact, the company employs more people than make up the population of these nations:

143

 Namibia

2,104,900

August 28, 2011

0.03%

2011 census

144

 Latvia

2,070,371

March 1, 2011

0.029%

2011 census

145

 Macedonia

2,059,794

December 31, 2011

0.029%

Official estimate

146

 Slovenia

2,058,170

September 13, 2012

0.029%

Official population clock

147

 Botswana

2,024,904

August 22, 2011

0.029%

2011 census

Its customer base is the envy of corporate America: About 100 million customers — nearly one-third of the U.S. population — visit Wal-Mart’s stores in the U.S. each week.

Globally, 200 million customers will visit a Wal-Mart and/or Wal-Mart-owned store each week.

You know me — I love putting these statistics into perspective and comparing them to easily understood metrics…

In terms of customer base, if Wal-Mart were a nation, its population would be bigger than:

5

 Brazil

193,946,886

July 1, 2012

2.76%

Official estimate

6

 Pakistan

180,655,000

September 13, 2012

2.57%

Official population clock

7

 Nigeria

166,629,000

July 1, 2012

2.37%

UN estimate

8

 Bangladesh

152,518,015

July 16, 2012

2.17%

Official estimate

9

 Russia

143,142,000

July 1, 2012

2.03%

Official estimate

10

 Japan

127,570,000

August 1, 2012

1.81%

Monthly official estimate

11

 Mexico

112,336,538

June 12, 2010

1.6%

2010 census

12

 Philippines

92,337,852

May 1, 2010

1.31%

2010 census

For the past 12 months, Wal-Mart has paid out $11.3 billion in dividends to its shareholders.

The $11.3 billion in dividends is like liquidating the entirety of Campbell Soup Company ($10.96B market cap), Alcoa ($10.27B market cap), Xerox ($10.12B), Western Union (11.28B), or Nordstrom (10.01B) — and giving it back to investors.

The $11.3 billion in dividends would be like giving away 1.3x Canada’s silver reserves every year (7,000 metric tons 11 x 35274 ounces per metric ton x $34.6 per ounce of silver = $8,543,362,800 est. value of Canadian reserves).

Wal-Mart’s dividend yield is 2.5% per year.

But I’ve found a unique way to boost Wal-Mart’s dividend by 100%…

So instead of getting a 2.5% dividend check from the retail behemoth, you’ll get over 5% — and you get that check every single month.

Don’t worry, this isn’t about options, futures, ETFs, or even DRIPs. It’s a very simple way to increase your dividend check.

I’ll show you how to do it here.

Forever wealth,

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Brian Hicks

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Brian is a founding member and President of Angel Publishing. He writes about general investment strategies for Wealth Daily and Energy & Capital. For more on Brian, take a look at his editor’s page.

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