Walmart Unveils Mega Stock Repurchase Program
Mon, Jun 6, 4:15 PM ET, by eDividendStocks.com
Wal-Mart Stores (WMT: 53.76 +0.19%) announced on Friday that their Board of Directors has approved a $15 billion share buyback program.
This mega stock repurchase program represents about 8% of Walmart's current market cap of $188.8 billion.
Over the past year, Walmart had repurchased nearly $13 billion worth of stock or 244 million shares.
Charles Holley, Walmart executive vice president and chief financial officer, commented on the stock repurchase program, "Our purchase of almost $13 billion of Walmart stock since last June is indicative of our strong free cash flow position. We are pleased to continue our share repurchase program with this new $15 billion authorization."
"The combination of our annual dividend and share repurchase program indicates the strength of our company and its commitment to returning value to Walmart shareholders," Holley added. "Walmart has increased its dividend every year since March of 1974, when we began paying a dividend of five cents per share."
Walmart's stock repurchase announcement follows a big dividend increase of 21% by the discount retailer in March.
Unfortunately, Walmart has no choice but to give big dividend increases and repurchase their own stock. That seems to be the only thing that is keeping their stock price from declining. And even with these measures, WMT shares are still down for the year while the Dow Jones index has gained over 4%.
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