Saturday, October 17, 2015



Purchased 18 shares of KMI on 10/15/2015 at $59.43
Total Spent: $1,069.87

Company Description
From Google Finance:
Wal-Mart Stores, Inc. is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company offers an assortment of merchandise and services at everyday low prices (EDLP). The Company's operations are conducted in three segments: Walmart U.S., Walmart International and Sam's Club. The Walmart U.S. segment operates retail stores in all 50 states in the United States, Washington D.C. and Puerto Rico, with three primary store formats, as well as digital retail. The Walmart International segment consists of operations in 26 countries outside of the United States and includes numerous formats divided into three main categories: retail, wholesale and other. The Sam's Club consists of membership-only warehouse clubs and operates in 48 states in the United States and in Puerto Rico, as well as digital retail.

With Wal-Mart Stores (WMT) down roughly 13% this week, we decided to take a advantage of the dip. As a long-term investor, we believe the current price offers a great value. It seems that the current dip is is related to the recent announcements made at Wal-Mart's annual meeting. After all, the dip occurred soon after the meeting.

We think that the recent decline is attributed to the sentiments of short-term investors. Yes, there will likely be short term impacts to growth and profits as the companies moves ahead with their effort to re-brand and position themselves for future success.  But we remain optimistic that the dividends for a dividend aristocrat (with over 40 years of dividend increases) like Wal-Mart Stores will remain safe.  We think their efforts to change their customer service experience and also position themselves to capitalize on the growing eCommerce business is a smart idea.  Even after reading the notes from the recent annual meeting, we remain positive on Wal-Mart's future.  In fact, if anything, we think their plans will help keep Wal-Mart relevant and a leader in the retail world for years to come.

With that said, and as a long term investors, we took the opportunity to add a few more shares to our family's dividend stocks portfolio.  In fact, with today's purchase, we were able to lower our cost basis on another stock we currently own. With the 18 shares added today, we now own 35 total shares of Wal-Mart Stores (WMT) in our family's dividend stocks portfolio. Our purchase today lowered our cost basis on WMT from $74.70 to $66.85. Additionally, our estimated forward dividends grew another $35.28, putting our yearly dividends at approximately $3,557/year (excluding our Edwards Jones account) and $3,915/year (including our Edward Jones account).

Since we had already held WMT shares in our family's dividend stocks portfolios (WF and EJ Accounts), the portfolio remains unchanged at a total of 47 different dividend paying stocks/ETFs and also 4 companies that either don't pay a dividend our has currently suspended their dividends.

Our family's dividend stocks portfolio may be found
by clicking on the link below:

We also maintain an extensive list of stock analysis
that can be access through the link below:

We also just started a list of Recent Buys by other bloggers
that can be access through the link below:


P/E: 12.29
Payout Ratio: 40.77%
Dividend Yield: 3.33%
40 consecutive years of dividend increases
Last Ex-dividend date: 8/5/2015
Next Ex-dividend date: 12/2/2015
Have paid a dividend since: 1975 (40 years)
Pays a dividend 4 times a year.
Market Cap: 188.7 Billion
52-week high: $90.97
52-week low: $58.61

Purchased Price: $59.43

What are your thoughts on of recent purchase?

What are you buying?


  1. AFFJ, Congrats on the buy!

    I think this is the most bought stock this week in our community. It's a tough one. I really wanted to pull the trigger, but I think I will hold out for a better price... or a break of this downward trend it has been on. Long term, there is no worries of course as it will perform!


    1. Yes, WMT was hands down the popular choice this week. We like the stability of the dividends (with payout ratio in the 40s) but would actually prefer better growth outlook. Either way, we couldn't pass up the opportunity to average down our cost basis on a company we plan to hold for the long run. AFFJ

  2. Will most likely buy a few more shares next Tuesday.

    1. Not sure if you ended up buying shares of WMT but we did see that you picked up shares of POT. We like POT also as we hold s few shares in our dividend stocks portfolio as well. Looks like the stock is starting to trend upwards. Way to pick up shares in the low 20s!

      Best wishes and continued success! AFFJ

  3. Nice, a lot of the community is jumping in on this one.

    1. Yes, this seems to be the popular choice this week. Future of WMT dividends appear safe but those looking for growth still seem to be staying away. AFFJ

  4. Though I'm not a fan of WMT, or any retailer for that matter, I can see why many are taking advantage of the sudden price decline. No doubt the stock has become too oversold which should provide you a nice pop in price going forward let alone getting paid to wait with a safe nice yield too. Nice buy.

    1. Thanks DivHut. With our previous cost basis in the mid 70s, we couldn't resist the opportunity to average down. The dividends look safe given that the payout ratio is currently in the low 40s so we are happy to wait for a recovery while we collect 3% in dividends.

      Thanks for stopping by. AFFJ

  5. I live in Portugal, so I don't have the "feeling" about this company's day2day.
    But numbers are really tempting to buy some of this stock.

    1. Yes, the recent price decline has made the stock very attractive. Nevertheless, spend some time to get to know the company better should you decide to invest.

      Best wishes. AFFJ