Monday, March 4, 2013

Assignment One

Dividend Policy

Wal-Mart is a dividend aristocrat as well as a major component of the S&P 500 and Dow Jones Industrials indexes. everywhere the past 10 geezerhood this dividend growth stock has delivered an yearly average total return of 10.50 % to its apportionholders. The majority of the gains came in the tardily 1990s. After peaking at 70.25 in late 1999 though, the stock has asleep(p) nowhere for 8 years.
At the same time society has managed to deliver an impressive 16% average one-year cast up in its EPS.

Wal-Marts annual dividend payments have make up everywhere the past 10 years by an average of 21% annually, which exceeds the growth in EPS. A 21% growth in dividends translates into the dividend payment doubling almost every 3.5 years. If we look at historical data, going as far back as 1993, Wal-Mart has managed to double its dividend payments every three and a half years (Dividend Growth Investor).

Consider the following scenario: if we invested $100,000 in WMT on declination 31, 1997 we would have bought 5071 shares (Adjusted for 2:1 stock split in April 1999). Your first dividend payment would have been $197.77 in March 1998. If you unploughed reinvesting the dividends though instead of sp culmination them, your every quarter dividend payment would have risen to $1211 by December 2007.

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!

For a period of 10 years, your quarterly dividend income has increased by 464 %. If you reinvested it though, your quarterly dividend income would have increased by 612% (Dividend Analysis: Wal-Mart).

Wal-Mart-s board of directors approved an increase in the annual dividend to $0.88 per share, a 31% increase from the $0.67 per share paid during fiscal year 2007. For fiscal year ending January 31, 2008, the annual dividend of $0.88 per share will be paid in four quarterly installments of $0.22 per share. For year ending 2010, Wal-Mart is increasing the quarterly dividend by a whopping 15%. The old annual payout was $0.95 per share. The new annual payout is $1.09 per share (Wal-Mart Increases Annual...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper

No comments:

Post a Comment