Why Walmart, WM, and Sherwin-Williams Are the New Standard in Dividend Performance

Overview

These three dividend stocks now yield less than the S&P 500, but investors are increasingly drawn to their strong track records of dividends raises and capital appreciation.

Walmart

• Revenue Growth: Walmart's revenue has surged over 25% in the last five years, driven by strategic investments in store remodeling and e-commerce.
• Capex Strategy: Despite significant capital expenditures, Walmart is eyeing long-term growth through supply chain automation and expansion.

WM (Waste Management)

• Sustainability Focus: WM's investments in recycling projects and renewable natural gas demonstrate a commitment to sustainable practices and long-term growth.
• RNG Leadership: WM's leadership in the LFG to RNG industry positions it well for the energy transition.

Sherwin-Williams

• Margin Growth: Sherwin-Williams' focus on margin growth across business units, particularly in paint stores and consumer brands groups, has led to impressive revenue growth.
• Performance Coatings: The company's performance coatings group drives revenue through industrial and commercial coating solutions.

Conclusion: While these top-performing dividend stocks may offer lower yields, they showcase strong growth potential and ongoing capital return programs through dividends and buybacks.