What Walmart actually does
Walmart was founded in 1962 by brothers Sam and Bud Walton in Rogers, Arkansas, and is headquartered in nearby Bentonville. It runs supercentres, discount stores, grocery stores, pharmacies and the Sam’s Club warehouse chain, with operations in the United States and about 19 other countries. It is among the largest companies in the world by revenue and one of the biggest private employers.
The company was listed on the New York Stock Exchange in 1972 and switched to the Nasdaq in December 2025.
How the business makes money
Walmart sells everyday goods at low prices. Groceries are the largest part of its sales, which makes demand fairly steady in good and bad economies. Profit margins are thin, so the company relies on volume, efficient logistics and a huge supplier network.
Newer income streams include e-commerce, advertising and membership programmes. These have higher margins than traditional shop sales and are an important part of the earnings story.
The dividend story
Walmart has increased its dividend every year for more than five decades, making it a Dividend King. It pays quarterly. The yield is usually modest, because the share price has also risen, but the consistency is what attracts income investors.
For an example of how a streak works, see our guide to dividend aristocrats. The raises tend to be small and steady rather than large.
What to keep an eye on
- Thin margins. Rising costs or price competition can quickly affect profit.
- Competition. Amazon, Costco, discounters and grocery chains all compete.
- Tariffs and supply chains. Many products are imported.
- Consumer spending. Walmart often gains when shoppers trade down, but weak spending still hurts.
Quick take
Walmart is a defensive retailer with a very long dividend record. It suits investors who value stability and steady increases more than a high starting yield.