Walmart paid $ 12bn worth dividends in 2019, Amazon paid $ 0
Retail giant Walmart spent $ 11.8 billion in 2019 on dividends and bought back shares of stock from its shareholders while its closest competitor Jeff Bezos-owned Amazon paid nothing to Wall Street investors, despite generating $13 billion more than Walmart in cash.
 
According to a report in Vox, Walmart has been paying dividends since it announced a 5-cents-per-share annual payment in 1974.
 
"Today, Walmart pays out more than $2 per share annually to its investors, which would work out to more than $6 billion alone in dividends based on its current number of outstanding shares," said the report.
 
Amazon, on the other hand, has never paid a dividend.
 
Amazon's "promise to investors has instead been built around the idea that as Amazon grows, eats up business in new markets, and starts generating meaningful profit, investors will get more excited about buying the stock, pushing the price up."
 
"It's a virtuous cycle that has seen Amazon's stock price increase around 5.5 times from this same point five years ago".
 
Walmart has spent more than $20 billion over the past few years alone on acquisitions, including $16 billion acquisition of Flipkart.
 
Walmart on Tuesday reported total revenue of $141.7 billion -- an increase of $2.9 billion or 2.1 per cent for its fourth quarter.
 
"In Q4, we saw strong performance in the US with eCommerce and Sam's Club plus strength in Mexico, India and China. We started and finished the quarter with momentum, while sales leading up to Christmas in our US stores were a little softer than expected," said Doug McMillon, President and CEO, Walmart.
 
Net sales at Walmart International were $33 billion, an increase of 2.3 per cent.
 
International net sales increased 2.8 per cent in constant currency with strength in Mexico, China and India.
 
Brett Biggs, Chief Financial Officer of Walmart said that the fourth quarter started and ended strong with solid sales growth through Cyber Monday and in January.
 
"The holiday season delivered positive transaction growth and underlying expense leverage was strong for the quarter. However, it wasn't as good as expected due to lower sales volumes and some pressure related to associate scheduling," he said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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    COMMENTS

    Newme

    1 month ago

    Walmart family is big and has many scions of Sam Walton who live off the dividends and they do not work in Walmart or else where.

    Nifty, Sensex remains under pressure – Tuesday closing report
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    The closing values of the major Asian indices are given in the table below:
     
     
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    NSE Nifty 50: Yes Bank Out, Shree Cement In
    The National Stock Exchange (NSE) has revised criteria and replacement for its indices. It has decided to remove Yes Bank from its Nifty 50 index from 27 March 2020. Yes Bank will be replaced by Shree Cement Ltd in the NSE 50-stock index.
     
    The index maintenance sub-committee (IMSC) of NSE Indices Ltd has decided to make changes in various indices, NSE said in a release. 
     
    The IMSC also decided to revise eligibility criteria for 17 Nifty indices. At present, to be included in these 17 Nifty indices, companies should be ranked within top-800, based on both average daily turnover and average daily full market-capitalisation, based on previous six months' data. This has now changed and, at the time of review, the companies should form part of Nifty 500. 
     
    The indices are Nifty Auto, Nifty Bank, Nifty Financial Services, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Pharma, Nifty Private Bank, Nifty Realty, Nifty Commodities, Nifty Energy, Nifty India Consumption, Nifty Infrastructure, Nifty MNC, Nifty PSE and Nifty Services Sector. 
     
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    No changes are being made to Nifty Auto, Nifty Bank, Nifty Metal, Nifty Oil & Gas, Nifty PSU Bank, Nifty Private Bank, Nifty Realty, Nifty Energy, Nifty Infrastructure, Nifty PSE, Nifty Aditya Birla Group, Nifty Mahindra Group, Nifty Tata Group And Nifty Tata Group 25% Cap indices.
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