Walmart Mexico’s Stakeholders to Receive More In Dividends

Following a positive first half of 2023, Walmart Mexico will increase dividends to stakeholders to 2.5%. 

The Mexican branch of the multinational retail giant had higher returns on capital employed (ROCE) than the retail market’s average. ROCE measures a company's yearly pre-tax profit relative to the capital employed in the business. Walmart Mexico’s ROCE reached 28%, while the retail sector’s hit 18%, reports Simply Wall Street.   

Walmart Mexico “deserves to be commended in regards to its returns,” says Simply Wall Street. The company employed 42% more capital in the last five years and the returns have remained at 28%. With these results, shareholders have earned a 44% return if they have not sold in the past five years and, this year, dividends are to go up. 

“Even over a long history of paying dividends, the company's distributions have been remarkably stable,” reads Simply Wall Street’s report. “Since 2013, the dividend has gone from MX$0.92 (US$0.055) total annually to MX$1.72 (US$0.10). This implies that the company grew its distributions at a yearly rate of about 6.5% over that duration.”

Earlier this year, Walmart Mexico, announced that its shareholders' meeting approved an increase of dividends to shareholders. In 2023, shareholders will receive a total of MX$2.69 (US$0.16) in dividends.

In June 2023, Walmart Mexico’s revenue was MX$854.5 billion (US$50.9 billion), while revenue totaled MX$49.9 billion (US$2.97 billion). Free cash flow reached MX$52.26 billion (US$3.11 billion). 

Walmart has 3,775 stores in Mexico and Central America, 13 e-commerce sites and a presence in 716 cities and six countries in the region.