Walmart's Dec. 11 Dividend Isn't the Real Reason to Own the Stock
Key Points
Walmart will pay a dividend of $0.24 per share on Jan. 4, 2027.
The dividend, currently yielding 0.8%, may not provide significant income.
But technology is improving sales -- and that's what makes Walmart a long-term holding.
For shareholders of record as of Dec. 11, Walmart (NASDAQ: WMT) will pay out a dividend of $0.24 per share on Jan. 4, 2027. For current shareholders, it's a nice way to ring in a new year with some income.
That said, the payout, which yields 0.8%, doesn't offer much incentive in and of itself for anyone who doesn't own shares to go out and buy some before Dec. 11. Just within the consumer goods sector, higher yields are available through Coca-Cola (2.2%), Procter & Gamble (2.6%), and Nike (4.2%).
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Still, even with that lower yield, there's a reason why Walmart stock is worth owning.
Image source: The Motley Fool.
The strong business model
While Walmart's dividend yield is on the low side, there's more to it than just a percentage. What's most important is the number of years the retail giant has consecutively increased its dividend payout: 53. By increasing those payouts for 50 or more consecutive years, Walmart has earned the title of Dividend King.
To earn that title, you need a strong business model, as over the last 50 years, Walmart has dealt with stagflation, inflation, war, economic slumps, technological disruptions, and plenty else that's been thrown at it. Still, it's kept increasing the dividend it pays to its shareholders year in and year out.
And that strong business model, which has enabled so many consecutive dividend payout increases, is why Walmart is worth considering as an investment. Plus, as Walmart leans more into technological advancements that make the shopping experience easier and can also generate additional sales, its business model is becoming more robust than ever.
Tapping into the powers of technology
With artificial intelligence (AI), there's a lot of debate on whether it's adding real value to businesses. For instance, as prolific as the rise of AI has seemed, according to research from The Motley Fool, only 24.6% of businesses in the United States were using it in October 2026.
That said, not only is Walmart finding use cases for it, but it's actually a case study on how AI is helping increase sales. For its fiscal 2027 second-quarter earnings, the company reported that the number of customers who used its AI shopping agent, Sparky, was up 70% from the prior-year period. In addition, customers who used it to shop spent 40% more per order than those who didn't.
For shopping convenience, the retailer is also using drone technology to deliver orders even more quickly to customers. Its drone deliveries are used across four states, and Walmart just hit the 1 million mark for deliveries on May 29.
While drone deliveries may seem like a novelty now, the global market size is projected to increase from $5 billion in 2026 to nearly $21 billion by 2034, according to Fortune Business Insights.As those deliveries become more commonplace, Walmart is already ahead of a growing trend.
Additionally, while it may have initially seemed like a strange decision for Walmart to offer a membership program in 2020, it's showing some signs of paying off. Members get perks like free shipping with no order minimums, as well as other benefits, which encourage people to shop at Walmart to get the most out of their membership.
While the company doesn't disclose full details on membership stats, the retailer said in its second-quarter report that Walmart+ net additions reached a high. Additionally, companywide membership fee revenue was up 17%.
The bottom line on Walmart
From its AI shopping assistant to drone deliveries to its membership program, Walmart is in a prime position to continue its dominance in the retail sector, which can reward shareholders all along the way.
It's been a bit of a tumultuous trading year for the stock, hitting a 52-week high of $135.16 and a 52-week low of $98.88. But Walmart can close out 2026 strong, as the stock price is up 18.4% over the last month alone. And as a long-term investment, it can reward investors even more.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike and Walmart. The Motley Fool has a disclosure policy.