10 Most Promising Dividend Stocks According to Hedge Funds

5. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 88

Walmart Inc. (NYSE:WMT) is an American retail corporation, based in Arkansas. The company operates a chain of hypermarkets, discount stores, and grocery stores across the US. The company is strengthening its digital presence, driving revenue through membership fees, commissions from third-party sellers on its online platform, and advertising payments from businesses looking to engage its customer base. This expansion in higher-margin digital services is playing a key role in increasing the company’s operating income.

Walmart Inc. (NYSE:WMT) is successfully utilizing Generative AI to improve both customer interactions and operational efficiency. Its AI-powered tool, My Assistant, has already supported over 50,000 employees by answering more than 1.5 million inquiries since its introduction. As engagement continues to rise, the company has expanded My Assistant’s availability to 13 more countries.

Walmart Inc. (NYSE:WMT), one of the most promising dividend stocks, maintains a strong cash position. In the first nine months of 2024, the company generated $22.9 billion in operating cash flow, $3. billion higher than the previous year. Its free cash flow also grew by $1.9 billion to $6.2 billion during this period. This cash position enabled the company to raise its payouts for 51 consecutive years. The company’s quarterly dividend comes in at $0.2075 per share and has a dividend yield of 0.85%, as of January 30.

As per Insider Monkey’s database of Q3 2024, 88 hedge funds held stakes in Walmart Inc. (NYSE:WMT), compared with 95 in the previous quarter. These stakes have a consolidated value of over $9.7 billion.