is it recommended for an investor to purchase walmart stores inc stock who wants?

To seek either capital appreciation (buying stock in a company that will increase in value) or who wants current income(buy stock in a company who pays dividends).

If there dividends and EPS increase over the years should investors purchase stock in both situations?

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  • 7 years ago
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    Walmart is a quality stock and as their dividends increase over the years, so will the stock price. However, keep in mind that the prices of stocks can increase or decrease independent of the performance of company. But in the long run you could reasonably expect about a 10% annual total return in dividends and capital gains.

  • 7 years ago

    there is nothing wrong with Walmart as a quality stock...however the stock is in decline right now

    http://web.tmxmoney.com/article.php?newsid=6024196...

    Year over year Walmart has done quite well

    Today I heard that retail sales has been quite low in the last few months and maybe Walmart is being caught in that sentiment.

    http://stockcharts.com/def/servlet/SC.pnf?chart=wm...

    When you look at this stock chart you can see the decline but it does not take away from the overall bullishness of the chart.

    Support exists at $76 with secondary support at $73.50 and really strong support at $71.00 - $71.50 though I doubt it will far that far.

    Resistance is at $80.00.

    http://stockcharts.com/h-sc/ui?s=WMT&p=D&yr=0&mn=6...

    this chart reveals the actual resistance is $79.00 and it looks pretty substantial to me.

    You also see the stock is starting a decline...this is just-the-beginning of the decline...that first support level at $76.00 looks very weak to me...$73.00 looks much stronger....I think this level of support will be tested and this is not necessarily the end to the fall.

    http://stockcharts.com/h-sc/ui?s=WMT&p=D&yr=0&mn=6...

    the RSI since mid April...since mid May that has now escalated to Bearish while and On Bal Volume has been neutral looking bearish now as of mid-May....the ADX is still mildly bullish but that looks to end soon as the green line approaches the red

    http://stockcharts.com/h-sc/ui?s=WMT&p=D&yr=0&mn=6...

    the CCi is very bearish and the CMF show a mildly bearish intent

    I find Ichimoku clouds fascinating....see how the green cloud has boundaries of about $76 and $73...they correspond to the supports I found elsewhere....think of a cloud as a sticky mess when you get inside. I think it will be easy to enter but harder to get out.

    Conclusion:

    Walmart is a quality company...there is no doubt about that. But right now it is NOT a buy...if you are vigilant you will be able to purchase this stock at least 5% cheaper.

    It is a WATCH for me...not a buy at present...As a buy-in point I think $73.00 is a possibility but that would have to be re-evaluated when it gets there as it could go down further if it breaks that level. When it eventually recovers from this correction it will be a pretty decent hold.

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