If Purchasing a Single Share of Walmart at Its Initial Public Offering (IPO), This is the Quantity You'd Hold Presently

If Purchasing a Single Share of Walmart at Its Initial Public Offering (IPO), This is the Quantity You'd Hold Presently

It's challenging to imagine a world devoid of Walmart (WMT), which decreased by 1.24% today. This business pioneered its first discount store in the early '60s and went public through an IPO in October 1970.

If you had the good fortune and acumen to purchase a solitary share during its initial public offering phase, your portfolio would have expanded significantly due to subsequent stock dividends.

How many shares would you possess now? By examining the stock dividend history and carrying out some calculations, you'll have your answer.

Increasing share count

Walmart has announced 12 stock dividends since its IPO. Majority of these were 2-for-1 dividends, but February saw a unique 3-for-1 dividend.

Each time a 2-for-1 dividend occurred, your share count doubled. In February, however, it tripled. As a result, your one share morphed into 6,144 shares.

The pre-adjusted dividend price was $16.50. Despite an increase in the number of shares, the price fell proportionately. That means the $16.50 transformed into a split-adjusted $0.0027 (close to a mere fraction of a cent per share). On Dec. 13, the stock closed at $94.25, bringing long-term investors substantial profits.

Additionally, you would have earned dividends for more than 5 decades. Walmart announced its first quarterly payout in March 1974, and the board of directors raised them every year since. Due to this consistency, Walmart is recognized as a Dividend King.

Walmart recently boosted its quarterly payout in February. It currently pays out $0.2075 per quarter, a jump of over 9% from the previous year's split-adjusted $0.19.

Walmart's simple business strategy, focusing on reduced costs and transferring benefits to customers, has resonated with shoppers. Moreover, this approach has been highly profitable and rewarding for shareholders. With its ultra-low everyday prices, it's challenging for competitors to undercut the company, securing continued profits for patient shareholders.

If you had wisely invested in Walmart's initial public offering, you could have benefited from numerous stock dividends over the years. Since its IPO, Walmart has declared 12 stock dividends, with the majority being 2-for-1 dividends and a unique 3-for-1 dividend in February, significantly increasing your share count.

To grow your wealth through investing in Walmart, it's essential to keep an eye on its quarterly payouts and dividend history. Walmart's consistent dedication to paying dividends has earned it the title of a 'Dividend King', with its first quarterly payout announced in March 1974 and annual increases since.

Read also: