Walmart’s Problem

It’s no secret that Walmart (NYSE: WMT) is a Dividend Aristocrat.

The retail giant has hiked its dividend for 51 consecutive years.

Problem is… the dividend yield is just 1.18%.

Dividend Aristocrats are companies that have consistently increased their dividends to shareholders for at least 25 consecutive years.

They’re considered royalty among income investors…

And Walmart is one of the most recognized names among that group.

Earlier this year…

The company increased its dividend by 9% to 83 cents per share.

This increase was Walmart’s 51^st consecutive annual hike.

In the first fiscal quarter, Walmart returned $2.73 billion to shareholders through $1.67 billion in dividends and $1.06 billion in share buybacks.

With a payout ratio of 37.5%, the company expects further dividend growth.

The company is also starting its AI and automation journey…

Which is why Jefferies analyst Corey Tarlowe reiterated a buy rating on WMT with a price target of $77, calling it his top pick.

Tarlowe predicts AI and automation could double Walmart’s operating income to over $20 billion by fiscal 2029, driven by efficiencies, advertising, theft mitigation, and autonomous driving.

He highlighted Walmart’s investment in Fox Robotics for autonomous forklifts and the use of automatic receipt verification at Sam’s Club as key AI initiatives.

But here’s the thing.

If you wanted to make $1,000 a month with WMT…

You’d need to invest $1,016,949 in the stock!

This doesn’t make sense AT ALL for the average investor.

There are far better options to invest for income today.

Yours in Wealth,

Ian Wyatt