I don’t know anyone who would dispute Wal-Mart’s position as one of the biggest growth stories of the 20th Century.
In the span of a few decades, the company went from an unknown small-town store to the poster child for big business. Take a look at some highlights from the company’s history …
• Sam Walton opened the first Wal-Mart in 1962.
• The company went public in 1970.
• In 1974, it paid its first dividend.
• In 1975, Wal-Mart had 125 stores in operation with sales of $340.3 million.
• By 2005, it was the world’s largest retailer (and its largest private employer!) with annual sales reaching $312.4 billion.
As you can see, Wal-Mart began paying a dividend just four years after it went public and that didn’t hurt the company’s growth one iota!
What’s more, Wal-Mart has not only continued to pay dividends to this day, but it has steadily increased those payments along with its rising revenues and profits.
See, in the theoretical world of academia, a perfect growth company may very well reinvest every penny back into its business.
But in the real world, entrepreneurs, executives and shareholders want to reap some of the profits while the growth is happening!
Bottom line: When a company is firing on all cylinders … and bringing in cash by the boatload … it’s more than capable of rewarding shareholders and totally dominating its industry. Find out Why dividends and growth go together today!
To your dividend investing success,
InvestingInDividends.com
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