How to Buy Walmart Stock

Known for its size, success, and apparent ubiquity, Walmart is a discount retailer that has had a tremendous career on Wall Street. Founded by Sam Walton in 1962, the corporation went public in 1970, debuting at $ 16.50 per share. You can still buy Walmart stock today, and here’s how.

Since then, the retail leader has had 11 two-for-one stock splits, with its closing price hitting a 2019 high of $ 121.28. The common example is that if someone had bought 100 shares of the initial public offering for $ 1,650, they would have 204,800 shares today, worth nearly $ 24.84 million at the maximum share price. At the same time, the company has increased its cash dividend every year since it first paid $ 0.05 in 1974..

However, in the age of Amazon and online shopping, many stockbrokers have avoided Walmart (Symbol: WMT), thinking that its days of wild growth are behind us. But if you do not agree with this statement and want to buy some shares of Walmart, then this article is for you. Next, we are going to review what your options are.

How to Buy Walmart Stock: Direct Investment

For those who want to skip the intermediaries, Direct investment is a good option to buy Walmart stock. The company makes its shares available to investors, including Walmart employees, through the Computershare system. The advantage of going this route is that it doesn’t take a large amount of money to get started. The downside is that the fees are high compared to trading apps and online brokers that offer commission-free trading. Also, you have no say in the price you pay or the price you sell at. Computershare simply fills out your buy and sell orders as it receives them.

To make a direct purchase of Walmart shares, you will need to create an access to Computershare. If you need help or prefer to buy stocks over the phone, you can also call (800) 438-6278. To stay up-to-date with the latest shareholder information, you can download the “Walmart Investor Relations” app, which is available for Apple, Android, and Windows devices.

As for dividends ($ 0.53 in 2019), you have two options: either reinvest them or deposit them in your bank account. There are no fees for automatic rollover. However, the same cannot be said for opening an account or, as noted above, buying or selling shares.

Requirements and fees associated with Walmart’s direct investments

Direct investment rates and minimums
Minimal investments – Initial investment: $ 250 or 10 automatic monthly deposits of $ 25

– All other investments: Deposit by check of $ 50 or bank transfer of $ 25

– Maximum investment: $ 150,000 per year

Purchase fees – One-time registration fee: $ 20

– Each one-time online bank transfer: $ 1 + $ 0.05 / share

– Each deposit by check: $ 5 + $ 0.05 / share

– Automatic withdrawal from bank account: $ 1 + $ 0.05 / share

– Returned check / ACH debit declined: $ 20

Dividend reinvestment – All costs covered by Walmart
Share sales rates – Each lot and market order sale: $ 25.50 + $ 0.05 / share

– The fees are paid with the proceeds of the sale

How to Buy Walmart Stock: Brokerage Account

For many independent investors, using a brokerage agency, especially an online one, probably makes the most sense. While you could theoretically invest in multiple companies through each company’s direct investment plan, a brokerage agency allows you to do this from a single account. The most attractive thing about this option is that you will probably pay no commission or pay a low commission. Plus, you have more control over pricing.

Trading stocks at brokerage houses has two forms: limit orders and market orders. If you are happy with the current price of a share, you would choose a market order for the number of shares you want to buy or sell. On the other hand, limit orders allow you to preset a specific price that a stock must reach before your account triggers a buy or sell.

Broker comparison
Brokerage Company Fees Minimum Better for
Robin Hood $ 0 $ 0 – Online / mobile phone merchants

– Independent investors

Merrill Edge $ 0 online / $ 29.95 for broker-assisted trading $ 0 – Bank of America account holders

– Customer service users

TD Ameritrade $ 0 online / $ 25 for broker-assisted trading $ 0 – Online merchants

– Clients who value customer service

How to buy Walmart Stock: Financial Advisors

Investing can be intimidating if you are new to it. The guidance of a financial advisor can go a long way towards calming that nervousness, as they generally have extensive experience in managing investments.. Many advisers even let clients dictate what types of investments they want their portfolio to include, so if Walmart stocks are something you are interested in, let your advisor know.

The caveat of working with an advisory firm is that they have higher fees than brokerage firms and direct investment plans.. However, financial advisers almost always build clients a comprehensive financial plan in conjunction with their portfolio. This ultimately increases the cost of their services, making them potentially unaffordable for lower-tier investors.

Walmart overview

Of the more than 11,000 Walmart stores, half are within the borders of the United States. Currently, there are about 1.5 million American employees working for the company, making it one of the largest employers in the country. In addition to its many stores Walmart, the company owns and runs Sam’s Club, a large wholesale chain. Excluding Walmart’s earnings, Sam’s Club made an impressive $ 57.84 billion in revenue during the 2018-2019 fiscal year. Beyond this, Walmart is now involved in the e-commerce business:

Walmart overview
US and international retail stores and distribution centers – Walmart Supercenters

– Walmart Discount Stores

– Walmart Neighborhood Market

– More than 150 distribution centers in the United States

Sam’s Club – Membership-based wholesale club

– 600 locations in the United States and Puerto Rico

Walmart US eCommerce – Jet.com

– Shoes.com

– Hayneedle

– ModCloth

– Moosejaw

– Bonobos

Walmart’s financial profile

Walmart has consistently reported strong finances for half a century. And after each stock split, when the share price was cut in half, the price then rose again, doubling (or more) investors’ money.

That said, e-commerce has taken a bite out of Walmart’s earnings, and when the company was struggling to find an answer, its shares fell in 2015 from $ 90.02 in January to $ 57.87 in November. Still, the shares are considered an aristocratic dividend and retain their “blue-chip” status. What’s more, some analysts think that Walmart, with its gigantic footprint, may be able to beat Amazon at its own game of free same-day delivery.. In fact, Walmart recently announced that it would cut shipping costs by using its many stores as distribution centers.

It can be difficult to visualize what the long-term returns of a stock might be, but according to a study by Howmuch.net, if you had invested $ 1,000 in Walmart shares in 2007, they would have been worth roughly $ 1,931 a decade. later. In this vein, the study goes on to illustrate that this outperforms the shares of giants like Coca-Cola and Pfizer.

Should You Buy Walmart Stock?

Walmart faces a lot of competition in today’s retail world. Discount department stores like Target have long invaded the Walmart business. But the growing dominance of online retailers like Amazon adds a whole new set of considerations for you as a potential investor. Therefore, Walmart’s aforementioned leap into e-commerce is a clear move to adapt to this rapidly changing environment. However, it is still a difficult task to change your business model when you are such a large company. It’s also tough to have dramatic growth when you’re already making $ 514.4 billion in revenue..

So at this point, Walmart doesn’t offer as much upside as some of the competing tech and retail stocks, but it does provide a certain level of stability.

In this sense, the company has shown that it can achieve sustained success, and has considerable brand awareness. This leaves Walmart stock as a solid capital investment that would fit well in a long-term, risk-averse investor’s portfolio. If you plan to reinvest your dividends, then Walmart is a great option.

Tips to be a better investor

  • With a bull market, many professionals don’t even try to beat these trends. Instead, they only seek to understand how the market moves, which different research has shown works best in the end. This is called passive investing, and instead of researching and tracking individual stocks, you simply choose the index and the mutual fund or exchange traded fund (ETF or Exchange Traded Fund) that uses the index as a benchmark..
  • If you never know when to sell a stock, you are not alone. Many people find it easier to buy than to sell. One solution is to have a selling price in mind when you buy the shares. But another is to hire a financial advisor. To find one, use an online financial adviser search tool, such as SmartAsset, which will connect you with up to three specialized advisers in your preferred area.

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