11 Best Retail Dividend Stocks to Buy

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 116

Walmart Inc. (NYSE:WMT) is an American retail corporation that operates a chain of hypermarkets, discount stores, and grocery stores across the US.

In December 2024, Walmart Inc. (NYSE:WMT) finalized its $2.3 billion acquisition of VIZIO, integrating the SmartCast Operating System into its ecosystem. This move enhances Walmart’s ability to improve customer shopping experiences while providing advertisers with additional opportunities through Walmart Connect. VIZIO’s strong advertising business, with over 19 million active accounts, further strengthens this initiative.

In fiscal Q4 2024, Walmart Inc. (NYSE:WMT) reported a 4.1% increase in revenue, reaching $180.6 billion, with constant currency growth of 5.3%. Operating income rose by 8.3%, supported by improved gross margins, higher membership revenue, and stronger eCommerce profitability. For the full fiscal year, the company generated $36.4 billion in operating cash flow and closed the year with $9 billion in cash and equivalents. In addition, Walmart repurchased $4.5 billion in shares and announced a 13% increase in its quarterly dividend to $0.235 per share, which was the company’s largest boost in over a decade.

Walmart Inc. (NYSE:WMT) currently offers a quarterly dividend of $0.235 per share, growing it by 13% in February. This marked the company’s 52nd consecutive year of dividend growth. The stock has a dividend yield of 1.10%, as of March 29.

Overall, Walmart Inc. (NYSE:WMT) ranks first on our list of the best dividend stocks in the retail sector. While we acknowledge the potential of WMT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than WMT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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