On Wednesday October 14, 2015 I purchased 4 shares of Wal-Mart Stores Inc. (WMT) for $60.20 a share. The company suffered the worst percentage decline since 1988 and followed up with another decline today. I think the selloff is overdone and happy I was able to add some more shares at a lower cost basis. The company announced a 2 year $20 Billion stock buyback plan. I would obviously like to see a bigger dividend take precedence over a sizable buyback, but at a current $0.49/quarterly dividend this should add $7.84+ to my annual dividend total.
Photo Source:http://www.abc10.com/story/news/local/sacramento/2015/08/26/sacramento-walmart-hiring/32411319/
It's great being fellow shareholders!!
ReplyDeleteI bought 20 shares at $61.xx and another 20 shares at $58.xx. What's not to love about the stock at 30% discount and lost 10% when they company announce $20B buy back? I'm looking to continue to average down and walmart and I'm planning to keep the shares forever.
Vivianne,
DeleteI think the drop is a great opportunity. Great job averaging down even lower. Buyback and dividends should support it over the next couple years, but further declines are opportunities to get in.
Even though some people love to hate this company, we are still co-owners of a great business.
It will be interesting to see if they are conservative with the next dividend raise too.
Thanks for stopping by!
And here I thought $63 was a good deal a week ago. Hindsight ....
ReplyDeleteCaptain Dividend,
DeleteYeah, you never know I bought some at $72.86 or something like that I think.
Over time though $63 is not a bad price while you can receive the dividends and average down more if you want and have room for more.
The company should do well over time. I don't agree with the hatred all these great companies receive from some people.