Walmart Inc. (WMT) reports third-quarter earnings before the opening bell Thursday, and analysts are expecting solid growth. The consensus calls for earnings of 60 cents per share, up from 58 cents in the same period last year. Revenue is projected to hit $175.27 billion compared to $168 billion a year earlier.
Beyond the quarterly numbers, there's been a significant leadership announcement. In a recent SEC filing, Walmart disclosed that longtime President and CEO C. Douglas McMillon will step aside on January 31, 2026, moving into an executive advisory role. It marks the end of an era for one of retail's most influential leaders.
But here's something that might interest income-focused investors: With all the attention on Walmart lately, the dividend picture is worth a closer look. The company currently offers an annual dividend yield of 0.93%, paying out 23 cents per share quarterly (92 cents annually).
The Math Behind Monthly Dividend Income
Let's say you want to earn $500 every month from Walmart dividends. First, multiply that monthly goal by 12 months to get your annual target: $6,000.
Next, divide that annual target by Walmart's annual dividend payment of $0.92 per share. The calculation looks like this: $6,000 / $0.92 = 6,521 shares.
So you'd need to own approximately 6,521 shares of Walmart, worth about $661,239 at current prices, to generate $500 in monthly dividend income.
If that sounds like a lot, consider a more modest goal. To earn $100 monthly (or $1,200 annually), you'd need 1,304 shares worth approximately $132,939.
Understanding Dividend Yield Dynamics
Keep in mind that dividend yields aren't static. They shift constantly because both the stock price and the dividend payment can change over time.
The dividend yield calculation is straightforward: divide the annual dividend payment by the current stock price. As the stock price moves, the yield moves in the opposite direction.
Here's how it works in practice. If a stock pays a $2 annual dividend and trades at $50, the yield is 4%. But if the stock price climbs to $60, that same $2 dividend now yields just 3.33% ($2/$60). Conversely, if the stock drops to $40, the yield jumps to 5% ($2/$40).
The dividend payment itself can also change, which directly impacts yield. When a company raises its dividend, the yield increases even if the share price stays flat. Cut the dividend, and the yield falls accordingly.
Recent Price Action: Walmart shares declined 1.5% to close at $101.39 on Tuesday.