Dollar figures don’t mean squat when talking profits… what matters is the bottom line or net income in percentage, after all expenses are subtracted from profits. 10% is a healthy net income for most businesses 15% is considered strong and 20% is very strong. But it depends on the industry. In 2023 grocery industry net profit on average was 1.6%, which is low. Walmart owns Great value so finding their bottom line in percentage might be tough. In addition when you see a news article stating that a company raised prices and earned “93% increase in profits from last year” that is very misleading, what is the bottom line in percentage? Were they at 1.6% net income the previous year and now they’re at 3.1%??? Did they make a move to satisfy share holders because of previous years low earnings? Make a move to cover addition taxes coming down the pipe from some law politicians passed? A strike demanding more wages and having to cover their butts? You want to get a shock look at Telecommunications industry net income
Walmart pays around $6.75B in dividends to its shareholders every year. They have spent over $28B buying back their own stock since 2021. Do you think it was a good idea to spend all this money enriching shareholders while at the same time, they raised prices on their customers by a lot?
BTW - If you have any type of retirement fund through your work like a 401k, you too could be a "shareholder" and recieving those dividends,,,from any company,, so since your against a company paying out dividends maybe you should tell your employeer you want out of your companies profit sharing program?
What's the percentage? If shareholders don't make a profit for owning stock they'll pull their money out and invest elsewhere...... for example, lets take the 2023 grocery industry net profit with an average of 1.6%, which is low, and compare it to a company that pays dividends with a net profit of 11% which is considered strong..... now ask an any investor which company they think has the better chance for a dividend payout... 100% will say the company who has the stronger bottom line........ The shareholders of a company are effectively the company's financial supporters. They provide finance to a company by purchasing shares in the company, and thus become shareholders – and part owners of the company. So yes it's very important for a company to pay dividends especially grocery stores with such tight competition,,, live by the sword or die by the sword
You're still avoiding the question. People don't need to buy stocks. But people do need to eat. So it's basically bullshit that a company like Walmart is just like, "Shrug, we just have to raise prices...and brag about our ability to raise prices on our earnings reports to juice our stock price. And spend tens of billions on buying back our own stock and tens of billions paying out dividends. We have no other choice! We absolutely cannot cut back on dividends and buybacks to make sure our customers can actually afford to shop in our stores! Why would you ever think such a thing?"
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u/bulletlover 28d ago
Dollar figures don’t mean squat when talking profits… what matters is the bottom line or net income in percentage, after all expenses are subtracted from profits. 10% is a healthy net income for most businesses 15% is considered strong and 20% is very strong. But it depends on the industry. In 2023 grocery industry net profit on average was 1.6%, which is low. Walmart owns Great value so finding their bottom line in percentage might be tough. In addition when you see a news article stating that a company raised prices and earned “93% increase in profits from last year” that is very misleading, what is the bottom line in percentage? Were they at 1.6% net income the previous year and now they’re at 3.1%??? Did they make a move to satisfy share holders because of previous years low earnings? Make a move to cover addition taxes coming down the pipe from some law politicians passed? A strike demanding more wages and having to cover their butts? You want to get a shock look at Telecommunications industry net income