Walmart's Dividend Policy and Debt

Added on 2020-03-16

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Running head: WALMART DIVIDEND 1Walmart DividendName Institution

WALMART DIVIDEND 2WALMART DIVIDENDDividend PolicyThe company uses stable divided policy and pays cash dividends. It is clinging on dividend aristocracy. Dividend Amount per Share The company’s total dividend payment stood at $6.30 billion, $6.20 billion and $6.10billion for the fiscal 2016, 2015 and 2014 in that order. On Feb 18th, 2016, the Walmart Board ofDirector approved fiscal 2017 yearly dividend of $2.00 per share. This was an increase overfiscal annual dividend of %1.960 per share. For fiscal 2017, annual dividend will be paid in 4quarterly installments of $0.5 per share. Why Stable Dividend PolicyThis is the easiest and most commonly utilized policy. Walmart’s goal was to aim for steady as well as predictable dividend payout yearly. This is what most investors seek by receiving dividend whether earnings are up or down (Renneboog & Szilagyi, 2015). Walmart mat stop or have stopped the dividend payments? Walmart has not stopped paying for dividend but it is facing a worrisome change ofexiling from dividend royalty. This is because the total amount of cash dividend paid outdropped by 1.10% in 2nd quarter from 2016. It has raised dividend payout per year for forty-threeyears, but increase have dramatically slowed. There is no intention to stop dividend payment.However, I think it would be wiser for Walmart to reinvest this money into the company since ithas been only struggling in the past three years to cling to aristocracy yet the truth is thatWalmart is doing bare minimum (Travlos, Trigeorgis & Vafeas, 2015). Long-Term Debt