Are you looking to buy stock in Walmart? One of the largest and most popular retailers in the world, Walmart offers an opportunity for investors to tap into a diverse portfolio of assets. Walmart has been in the news lately as it looks to conquer the online shopping landscape, and with the world increasingly turning to online outlets, this could be a great stock to buy. In this article, we will be exploring how you can buy Walmart stock and what factors you need to consider before doing so.
What Is Walmart?
Walmart is an American multinational retail corporation which operates a chain of hypermarkets with over 11,300 stores in 27 countries and e-commerce websites in 10 countries. Founded in 1962 by Samuel Walton, it is headquartered in Bentonville, Arkansas and is credited for reducing the cost of goods to consumers in the United States. Walmart sells a vast array of products from clothing and electronics to grocery foods and general merchandise. It has become one of the most recognized brands in the world, with its presence in numerous countries and its e-commerce sites.
What Can You Expect From Walmart Stock?
Before investing, it is important to understand what you can expect from Walmart stock. The company follows a standard pattern when it comes to its stock performance. Over the past 5 years, the average yearly returns have been around 9.7%, with the highest being 17.0% in 2020 and the lowest being -24.5% in 2020. In general, the stock has done well over the long haul and continues to be one of the best performing stocks in the S&P 500. It is not a good short-term investment, but it has the potential to pay off in the long run.
Overview Of Walmart Investment
Walmart stock is classified as a blue-chip stock and is a component of the Dow Jones Industrial Average (DJIA) and the S&P 500. It has a market capitalization of $356 billion which makes it one of the largest companies in the world. The Walmart stock has an earnings per share (EPS) of $4.78 and a dividend yield of 1.4%. The company is known for its dividend payments and has increased the dividend payout for the past 44 consecutive years.
How To Buy Walmart Stock
You can purchase Walmart stock through a number of different methods, such as through a brokerage account, directly from Walmart, or through a direct investment plan. Let’s take a look at each of these options.
Brokerage Account
The simplest way to buy Walmart stock is through your existing brokerage account. You can log in to your brokerage account, search for the ticker symbol “WMT” (which stands for Walmart), and then choose the number of shares you want to buy. Once you have entered your order, you will enter your debit or credit card information and the transaction will be completed immediately.
From Walmart
You can also buy stock directly from Walmart. You can sign up for their direct stock purchase plan, which allows you to purchase shares of Walmart through the company. You will need to provide your personal information, your bank account details, and then submit your application. Once this has been processed, you can purchase shares of Walmart stock directly from the company.
Direct Investment Plan
If you are interested in the long-term prospects for the company, you should consider investing in a direct investment plan. This allows you to buy stock and become a part-owner in the company. The process is slightly more involved as you will need to fill out an application and provide documentation, such as a driver’s license or passport. Once this has been processed and approved, you will be enrolled in the Walmart Direct Investment Plan and can buy shares which can be held in an account managed by the company.
Taxes
You should be aware of the tax implications of buying stock. If you are investing through a brokerage account or directly from the company, you will be subject to capital gains taxes. This means that you will need to declare your profits and pay taxes on them when you sell the stock. If you are investing through a direct investment plan, you may be able to defer taxes until you sell the stock.
Risks
It is important to always be aware of the risks associated with any investment. Walmart is a large and stable company, but the stock market is unpredictable and market conditions can change quickly. You should ensure that you understand the risks associated with investing in Walmart stock before you commit to any purchase.
Walmart is one of the largest and most popular retailers in the world, offering investors the opportunity to tap into a diverse portfolio of assets. Although it is a blue-chip stock and a component of the S&P 500, it is important to be aware of the risks associated with investing and to understand what you can expect from the stock before you buy. By understanding how to purchase Walmart stock and the tax implications of doing so, you can make an informed decision and choose the best option for your needs.
