Let’s be real for a second. If you’re hunting for a high-octane income stream to fund a lavish retirement, a 0.82% yield sounds like a joke. It’s barely a blip on the radar when compared to some of those 4% or 5% "safe" utilities or the double-digit traps you find in the REIT world.
But here’s the thing about the wmt stock dividend yield: it’s deceptively small because the company is actually winning.
Walmart Inc. (WMT) is currently in a weird, enviable position where its share price is growing so fast that the yield keeps getting "compressed." As of mid-January 2026, the stock is hovering near all-time highs. When the price of a stock "roars" higher—up over 130% in the last five years—the math dictates that the yield drops unless the company hikes the payout by triple digits, which nobody expects.
So, if you’re looking at that sub-1% number and feeling unimpressed, you might be missing the forest for the trees. This isn't just a grocery store anymore; it’s a tech-powered, advertising-heavy, global logistics monster that just happens to pay you to own it.
The Reality of the WMT Stock Dividend Yield Today
Honestly, the numbers are pretty straightforward. Walmart’s annual dividend for fiscal year 2026 is $0.94 per share. They pay this out in four quarterly chunks of $0.235.
If you bought shares today, you’d be looking at that wmt stock dividend yield of approximately 0.82% to 0.84%. For every $1,000 you park in WMT, you're getting about $8.20 back in cash every year.
That’s pocket change. Or is it?
To understand why investors still pile into this stock, you have to look at the payout ratio. Right now, it’s sitting around 32%. That is incredibly low. It basically means Walmart is only using a third of its earnings to pay shareholders. The rest? It’s being plowed back into things like:
- Vizio integration for their advertising business (Walmart Connect).
- Automation in fulfillment centers (trying to beat Amazon at the "3-hour delivery" game).
- International expansion, specifically in China and via Flipkart in India.
Why the 2024 Stock Split Still Matters
You might remember the 3-for-1 stock split back in February 2024. If you look at old charts, the dividend might look like it "crashed" from over $2.00 down to 80-something cents.
It didn't.
That was just the math adjusting. They split the share price by three, and they split the dividend by three. Actually, they used that moment to give the dividend a 9% bump—the biggest increase they’d done in over a decade. Then, in 2025, they followed it up with a massive 13% hike.
This is a "Dividend King" we're talking about. They have raised that payout for 52 consecutive years. Most companies can't survive a single recession without cutting their dividend; Walmart has survived inflation, the 2008 crash, a global pandemic, and the "retail apocalypse" while raising theirs every single year.
Comparing Yields: Walmart vs. The Competition
You’ve got choices. If you want a retail dividend, you’ve likely looked at Target (TGT) or Costco (COST).
Target usually offers a much higher yield, often north of 2.5% or 3%. It’s a "yield play." Costco, on the other hand, is notorious for a yield even lower than Walmart’s—usually around 0.5%—but they tease investors with "special dividends" every few years that can be $10 or $15 a share.
| Metric | Walmart (WMT) | Target (TGT) | Costco (COST) |
|---|---|---|---|
| Current Yield | ~0.82% | ~2.8% | ~0.55% |
| Dividend Streak | 52 Years | 53 Years | 20+ Years |
| Payout Ratio | ~32% | ~50% | ~28% |
Walmart sits in the middle. It’s safer than Target because its grocery business (which is 60% of its US sales) is recession-proof. People might stop buying $40 throw pillows at Target when the economy tanks, but they aren't going to stop buying milk and eggs at Walmart.
The "Secret" Growth Driver: eCommerce and Ads
Why is the wmt stock dividend yield so low? Because the market has stopped valuing Walmart like a boring old retailer and started valuing it like a tech company.
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In their most recent Q3 2026 earnings, global eCommerce grew by 27%. In the U.S. alone, they are delivering 35% of orders in under three hours. That’s insane.
Then there’s the advertising business. Walmart Connect grew 33% recently. Advertising is a high-margin business. Selling a box of Cheerios has a tiny profit margin; selling a digital ad to General Mills to show you those Cheerios has a massive profit margin. As these high-margin segments grow, Walmart has more "free cash" to either buy back shares or—you guessed it—keep hiking that dividend.
Is the Yield Sustainable?
Honestly, yeah.
With a 32% payout ratio, Walmart could double its dividend tomorrow and still have plenty of cash to run the business. They won't, of course, because they are conservative. But that "margin of safety" is why the stock trades at a premium. You aren't just buying a 0.8% yield; you’re buying a 52-year insurance policy on your capital.
What Most People Get Wrong About WMT
The biggest mistake is looking at the dividend in a vacuum. You have to look at "Total Return."
If a stock pays a 5% dividend but the share price drops 10% in a year, you lost money. WMT might only pay 0.82%, but if the stock price goes up 20% in a year, your total return is roughly 21%. Over the last year, WMT has outperformed the S&P 500 significantly.
Also, don't ignore the "Yield on Cost." If you bought Walmart ten years ago, you didn't buy it at today's high price. Your "effective" yield today might be 4% or 5% based on the price you originally paid. That’s the magic of dividend growth.
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Actionable Steps for Investors
If you're thinking about adding WMT to your portfolio for the dividend, keep these things in mind:
- Don't wait for a "massive" dip. Walmart is a "blue chip" that rarely goes on sale for 30% off. If you're waiting for a 2% yield, the stock price would have to crash by more than half, which usually only happens if something is fundamentally broken.
- Use DRIP. Set up a Dividend Reinvestment Plan. Since the yield is small, those quarterly payments won't buy many shares on their own. Let your brokerage automatically plow that cash back into fractional shares.
- Watch the February earnings. Walmart traditionally announces its annual dividend increase in February. In 2025, they gave a 13% raise. If they announce another double-digit hike in 2026, it’s a sign that the "new" high-margin Walmart is firing on all cylinders.
- Check the Payout Ratio. As long as this stays under 50%, the dividend is "fortress-level" safe. If it starts creeping toward 70%, it means growth is slowing down and they're struggling to fund the payout.
The wmt stock dividend yield might look like a tiny "thank you" note from a giant corporation, but it's actually the heartbeat of one of the most successful financial machines in history. It's built for stability, not for thrills. And in a volatile market, sometimes boring is exactly what your portfolio needs.
To get started, check your current portfolio allocation to see if you're overexposed to high-yield but high-risk sectors; replacing a portion of those with a steady grower like WMT can significantly lower your overall volatility. After that, look into setting up a limit order at a price point you’re comfortable with, keeping in mind that WMT's 52-week low is often a distant memory by the time the next quarter rolls around.