The equity market has made a sharp recovery as concerns over an economic slowdown began to fade, with tech stocks once again taking center stage. While these high-growth names tend to grab the spotlight, it’s easy to overlook the more stable performers, the companies that deliver consistent income and long-term capital appreciation quietly, year after year.
One such group of often-overlooked powerhouses is the Dividend Kings. These are companies that have increased their dividends for over 50 consecutive years. Among this elite group, Walmart (WMT) stands out for its consistent performance and its commitment to rewarding shareholders.
The retail behemoth has long been a staple in portfolios focused on stability, income, and resilience across market cycles. Walmart maintained its dividend growth streak and raised its dividend by 13% to $0.94 per share earlier this year. This marks WMT’s 52nd consecutive year of dividend increases, reflecting its financial strength and its ability to sustain payouts.
Walmart’s ability to raise dividends consistently isn’t just about size or market dominance. It reflects a deep-rooted operational efficiency and a business model that evolves with the times. In recent years, the company has made strategic moves to stay ahead of a shifting retail landscape. It has expanded into higher-margin ventures, such as advertising and membership programs, which are less dependent on pure retail volume and more focused on profitability. These initiatives are designed to drive long-term growth, even when traditional sales face headwinds.
Despite its solid financials and dividend growth, Walmart’s stock has remained relatively subdued so far this year. The disconnect between its financial performance and stock price suggests that the market may be underappreciating Walmart’s growth potential, which presents an opportunity for buying.
Walmart’s positioning as a low-cost leader could play to its advantage, potentially acting as a tailwind for both earnings and stock performance.
Moreover, analysts are bullish about its prospects, thanks to its reliable cash flows, strong balance sheet, and consistent execution in both physical and digital retail.
With this context, let’s explore why this Dividend King is poised to soar in 2025 and beyond.
Walmart is transforming from a traditional retail giant into a digital powerhouse, and the shift is paying off. While store sales remain solid, it’s the company’s growing focus on high-margin revenue streams, including e-commerce, advertising, and memberships, that’s accelerating its profitability at a faster pace than revenue growth.