Walmart (WMT) may have had consistent dividend growth over the last 17 years, but it trails two of its grocer rivals when it comes to who has the best dividend yield.
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Investors come in mainly two shapes and sizes – the capital growth fans who look for returns from higher share prices – and the income investors who like to build up their financial stack through investing in dividend-paying stocks.
If you are in the latter camp, then the two main metrics you are likely to be interested in are dividend yield and dividend payout ratio.
Dividend yield is an important metric when looking at which stocks to invest in. The yield shows how much a company pays its shareholders in dividends every year relative to its share price. It is expressed as a percentage and can handily be used to work out both your investment return and compare with other stocks.
A dividend payout ratio is the percentage of net income that is distributed to shareholders in the form of dividends. A lower payout ratio means that a company has ample room to grow its dividend. A higher payout ratio may be a sign that the payments could become unsustainable.
Investors can keep track of these metrics via TipRanks both through a dedicated Dividends page and stock-by-stock. Let’s look at the nation’s grocers and see how their dividends compare. Who is offering the best yield?
Walmart
The retail giant’s dividend amount per share payouts in September 2026 and January 2027 are expected to be $0.235, which will continue the company’s upward trajectory. This is higher than the $0.21 per share from August 2024. It has had dividend growth over the last 17 years.
It has a dividend yield of 0.85% and a payout ratio of 36.58%.
COSTCO
Costco’s (COST) next dividend amount per share payout is set to be $1.3 in May. This is far higher than the $1.02 paid out in February 2024, and again shows the company’s increasing confidence. It has had dividend growth over the last two years.
Overall, Costco has a dividend yield of 0.59% and a payout ratio of 27.10%.
Kroger
Kroger’s (KR) next dividend amount per share payout is set to be $0.35 in June. This is higher than the $0.29 back in January 2024. It has had dividend growth over the last 17 years.
Overall, Kroger has a dividend yield of 2.15% and a payout ratio of 28.39%.
Albertsons Companies
Albertson’s (ACI) next dividend amount per share payout is set to be $0.15 next month – May. Again, this shows the health of the grocer sector as it is higher than historical payouts. Indeed, it has had dividend growth for the last three years.
Overall, Albertsons has a dividend yield of 3.49% and a payout ratio of 27.78%.