Now a good time to get into WMT

With the recent dip, is now a good time to buy shares in Wal-Mat?
With the slide the dividend has increased to 3.4%, that's better than any rate you'll ever get at a bank.
I also can't recall any blue chips with such a great yield.

 

I thought I heard on Bloomberg or CNBC recent discussions of the next few years $WMT facing increasing employee wages pressures and decreasing profit margins due to competition, primarily from $AMZN. Nevertheless, analysts's ratings seem to be pretty centric on Hold (http://www.marketwatch.com/investing/stock/wmt/analystestimates and https://finance.yahoo.com/q/ao?s=Wmt&ql=1).

FWIW $VZ dividend yield is ~5%, $F ~4%,, $CSCO and $INTC are in the high 3's.

 

It would be a risky bet IMHO because Walmart is well past it's prime. And things will only get worse as they continue to lose business to online retailers. While yes Walmart is going out of business, fact isn't it never will be as profitable as it was in the past.

 

Hey do you know any other decent high yield equities?

 

For a starting point yout might look at http://www.nasdaq.com/dividend-stocks/ for starters. You'll have to do your own vetting. Frankly, I would go into my broker's advanced research pages and construct my own queries. If your broker doesn't offer such tools, try Zach Screening Tools (http://www.zacks.com/screening/) as they supply a lot of data to NASDAQ.com. I think Google Finance and Yahoo Finance may offer screening tools, but it has been many years since I last looked. I tend to be conservative in my dividend payers. Large cap blue chip in the sectors that are working. HTH. YMMV.

 

I do think the future looks bleak for WMT. Higher wages and more people preferring to shop online... together with a generally slow economy... doesn't look too great. That being said the price is pretty low now and they do have a good history of making things work so I wouldn't rule them out, especially if you are looking for a short to medium timeframe investment.

 

Great thanks BW! I will certainly start there and branch out.

 

Warren bailed on his WMT stocks people, these stocks do not have a bright future, nothing to scare you but this was bound to happen. The eCommerce sites will shut Walmart down.