"Walmart Board Approves New $15 Billion Share Repurchase Program"
"Wal-Mart Stores, Inc. (WMT) announced at its Annual Meeting of Shareholders that its Board of Directors approved a new program authorizing the company to repurchase $15 billion of its shares, effective June 6, 2013. This program replaces the previous $15 billion program announced on June 3, 2011 (2011 Authorization). As of June 6, the company had approximately $712 million remaining on the 2011 Authorization. Under the share repurchase program, repurchased shares are constructively retired and returned to unissued status.
“Our strong cash flow enabled the company to invest in growth and repurchase over $14 billion of our stock during the last two years,” said Charles Holley, Walmart executive vice president and chief financial officer. “We’re pleased to continue our share repurchase program with this new $15 billion authorization.”
In addition to share repurchases, the company continues to return value to shareholders through dividends. Earlier this year, Walmart increased the fiscal 2013 dividend per share by approximately 18 percent to $1.88 for fiscal 2014, up from $1.59 in fiscal 2013."
WMT is buying back about 3% of their own shares each year as well as paying out a dividend with a 2.5% yield. Earnings and their dividend should double in the next 7 years so should WMT only trade at 15 times earnings with 10 year bonds earning 2%?