Despite the well known problems Wal-Mart (WMT) is facing, the company today raised its dividend more than 20%, giving the stock a respectable 2.75% yield. Some of the problems it is facing:
- Ongoing public relations struggles as the company moves into a new community and puts local business owners out of business.
- Accusations of mistreatment from current and former employees.
- Loss of local market share to smaller competitors with stores in neighborhoods where their customers live.
These problems are real, and Wal-Mart will have to work hard at shedding some perceptions of it as an 'evil empire.'
That said, Wal-Mart is an investment that should probably show up in most conservative, income driven investors' portfolios. In response to losing market share to local competitors like Dollar Tree (DLTR), Family Dollar (FDO), and Dollar General (DG), Wal-Mart has stated it will begin to unleash its "Everyday-Low-Prices" strategy that it had gotten
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Samaire Armstrong Selita Ebanks Michael Michele Marisa Tomei Shannyn Sossamon
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