Walmart Just Reported Earnings. Here's Whether the Dividend Stock Is Still a Buy.
Lawrence Rothman, CFA, The Motley Fool
Tue, August 25, 2026 at 1:05 PM GMT+3 3 min read
Stock prices tend to fluctuate after a company reports its quarterly earnings, as the press and some investors focus on short-term results. With many companies recently reporting earnings, this is also a good time to assess a company's long-term future.
Walmart (NASDAQ: WMT) released its fiscal second-quarter 2027 results on Aug. 20, for the period that ended on July 31. It's time to dig into the report to make an informed decision about the stock.
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Should you buy Walmart stock right now?
Walmart's revenue increased a solid, if unspectacular, 5.1% year over year after removing the foreign-currency translation effects. At the U.S. division, its largest, same-store sales (comps) grew 2.6%, excluding gasoline sales. Notably, higher traffic added 1.5 percentage points, with increased spending contributing the balance.
With many retailers struggling, it's good to see Walmart post positive comps. Still, the growth has slowed. The company has been gaining market share, including from higher-income shoppers, but that has its limits.
Meanwhile, the stock trades at a rich valuation compared to the S&P 500 index. That translates into high expectations for future growth. Walmart's shares have a price-to-earnings (P/E) ratio of 38 compared to the index's 30.
Investors can expect regularly increasing dividends. Walmart has an impressive history of raising the payout annually for 53 straight years. That puts it in special company as a Dividend King, or those that have increased dividends annually for at least 50 straight years.
However, with a less than 1% dividend yield, it trails the S&P 500 index yield by about 10 basis points.
While Walmart's a solid company, with an expensive valuation and below-average dividend yield, I'd pass on the shares.
Should you buy stock in Walmart right now?
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.
Walmart Just Reported Earnings. Here's Whether the Dividend Stock Is Still a Buy. was originally published by The Motley Fool
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