Ebube Jones
4 min read
In This Article:
Walmart (WMT) is looking into launching its own stablecoin.
According to reports, retail giants Walmart and Amazon (AMZN) are both considering creating their own stablecoins as a way to avoid billions in credit card fees. Plus, stablecoins, which are digital currencies tied to the U.S. dollar or other stable assets, offer faster, cheaper, and more secure payments.
If Walmart can add a stablecoin to its business, it could help protect profits from rising payment costs and make shopping smoother for its customers. This financial flexibility would also reinforce Walmart’s commitment to shareholders. The company’s recent 13% dividend hike to $0.94 per share marks its 52nd consecutive year of dividend growth, underscoring its Dividend King status and long-term financial strength.
With new rules like the proposed Genius Act moving through Congress to set clear standards for stablecoins, Walmart’s early move in this space could give it a real edge as payments keep changing. Let’s dive deeper.
Walmart’s (WMT) business model centers on keeping prices low and running its operations as efficiently as possible. The company uses its huge supply chain, wide store network, and growing digital platforms to reach millions of shoppers every day.
This focus on efficiency shows up in Walmart’s stock performance. Over the last 52 weeks, the stock has climbed 39% and it’s up 4.3% so far this year.
When it comes to valuation, Walmart has a forward price-earnings ratio of 36.4x, much higher than the sector average of 16.51x. This shows that investors are willing to pay more for Walmart’s steady performance and growth potential. Even with its massive size, Walmart keeps rewarding shareholders. The company recently raised its annual dividend by 13% to $0.94 per share, marking 52 straight years of increases. The current yield is 1%, with a payout ratio around 32%, which shows Walmart’s balance between stability and investing for the future.
The numbers back this up. In the most recent quarter, Walmart brought in $165.6 billion in revenue, up 2.5%. Global e-commerce sales jumped 22%, and its advertising business grew 50%. Membership income grew nearly 15%, and operating income rose 4.3%, thanks to stronger margins and growth in both physical and online sales.
