Is Walmart a Corporation in 2024? All You Need to Know
With over 10,500 stores worldwide, Walmart is undoubtedly one of the biggest retailers globally. But you may wonder – is Walmart a corporation? Or is it privately owned?
As a consumer and potential investor, understanding Walmart‘s corporate structure provides helpful insight. Let‘s explore the key facts.
A Brief History
Walmart started in 1962 as a private business, but founder Sam Walton chose to take the company public in 1969 to fuel aggressive expansion plans. On October 1st, 1969, Wal-Mart Stores, Inc. incorporated in Delaware, paving the way for its IPO.
Since going public on the NYSE in 1970, Walmart has provided exceptional returns for early investors. The chart below shows the company‘s impressive growth trajectory over 50+ years.
| Year | # of Stores | Revenue |
|---|---|---|
| 1970 | 32 | $31 million |
| 1980 | 276 | $1.2 billion |
| 1990 | 1,528 | $25.8 billion |
| 2000 | 4,000 | $165 billion |
| 2010 | 8,416 | $421 billion |
Current Ownership Breakdown
Today, here is the ownership structure breakdown for Walmart‘s over 3 billion company shares:
- Walton Family: 47%, 1.4 billion shares
- Institutional Investors: 29%, 890 million shares
- Individual Investors: 24%, 730 million shares
As you can see, the Walton heirs, including Chairman Rob Walton, maintain operational control with their 47% stake. But public float of over 50% provides access to capital for growth initiatives.
Why Stay a Public Corporation?
In 2022, Walmart generated $573 billion in revenue with $6.3 billion in net income. With strong financial performance, some may wonder why Walmart chooses to remain public vs. going private.
Benefits of the current public corporate structure:
- Access public capital for investments in eCommerce, health clinics, InHome delivery, etc.
- Incentivize employees through stock purchase plans and equity awards
- Provide liquidity for some Walton family shareholders
- Balance family vs non-family ownership interests
- Remain accountable to public shareholders
Based on these factors, I expect Walmart will continue as a public corporation into the long term rather than shifting structures.
Investing in Walmart Stock
For stock investors, Walmart represents a "blue chip" defensive name to add stability to a portfolio. In 2022, Walmart outperformed the S&P 500 index with a 4% return compared to a 19% decline.
And in January 2023, Walmart announced a modest 1.9% dividend raise to $2.28 per share annually. This marks the 49th straight year of dividend growth.
As an individual investor, here is the step-by-step process to buy Walmart stock:
- Open a brokerage account with a firm like Fidelity or Vanguard
- Fund your account via bank transfer or debit card
- Type the ticker symbol “WMT” and enter the # of shares to purchase
- Complete the buy order for the desired dollar amount
Once you have purchased the shares, you become a partial owner in the Walmart corporation!
Other Ways to Get Involved
Beyond buying stock outright, consumers have a few options to gain financial exposure to Walmart:
Walmart Marketplace: Independent merchants can leverage Walmart‘s retail infrastructure while retaining ownership of their eCommerce brands.
Associate Stock Purchase Plan: As an employee, gain eligibility to purchase Walmart stock directly from your paycheck at a 5% discount.
The Verdict: Walmart Remains a Corporation
Given its track record of success, access to capital, public shareholder accountability, and family succession planning, I expect Walmart will continue operating as a public corporation for decades to come.
The company shows no signs of shifting to franchise-owned stores or private ownership under another corporate umbrella. As long as the controlling Walton family shareholders maintain confidence in the current structure, Walmart will likely hold its status as a publicly traded company on the NYSE.
So in summary – yes, Walmart is undoubtedly still a corporation in 2024!
I hope this guide provides helpful perspective on Walmart‘s background, ownership, operations as a public company, how to invest, and why its corporate status is here to stay. Let me know if you have any other questions!
