1 Top Dividend King to Buy and Hold Forever

This year has been challenging for major retailers, as President Donald Trump's tariffs have impacted their operations and consumer behavior. Walmart (NYSE: WMT), one of the largest of them all, hasn't completely escaped this problem. However, the company has navigated them better than most of its similarly sized peers. Walmart's latest financial results once again reminded the market why it is such a reliable company to invest in for the long haul. Let's look more into it.

Walmart's strong Q3 results

Like many retailers, Walmart imports a substantial percentage of its merchandise from abroad. Tariffs could increase the costs of doing so and force it to pass these higher expenses on to consumers, while squeezing its profits and margins. Walmart has built its business and brand largely on its ability to offer low prices -- the company pioneered "everyday low prices." So, Trump's trade policies could pose a significant obstacle to Walmart's core appeal.

However, the retail giant has made a conscientious effort to keep its promise to customers despite the challenging environment. Walmart still has thousands of rollbacks (temporary price reductions on various items) in place that help attract price-sensitive customers. Meanwhile, the company remains one of the leading online e-commerce players in the U.S. and is the second-lowest-priced retailer in the country.

Image source: Getty Images.

Walmart's prices have increased on average, but it remains highly competitive in that department when compared to other major retailers. The results of the company's efforts were evident in its latest update, for the third quarter of its fiscal year 2026, ending on Oct. 31. Walmart's revenue increased by a solid 5.8% year over year to $179.5 billion, with U.S. comparable sales rising 4.5% year over year. Importantly, the company's e-commerce revenue increased 27% compared to the year-ago period, while its higher-margin advertising business grew 53%.

Walmart's adjusted earnings per share (EPS) came in at $0.62, up 6.9% from the prior-year quarter. Not only did Walmart post strong Q3 results, but the company also increased its guidance for its fiscal year 2026. Walmart now expects sales growth between 4.8% and 5.1%, up from its previous guidance of 3.75% to 4.75%. And on the bottom line, the company is now projecting adjusted EPS between $2.58 and $2.63, up from the previous range of $2.52 to $2.62.

Why Walmart is a forever stock

True, that was just one quarter. However, it does, once again, demonstrate Walmart's ability to overcome challenges, an absolutely essential quality for a forever stock. Nor is this a one-off. Walmart has performed well through both good and bad times for decades. That's evident in the fact that it is a Dividend King, that is, a company that has achieved at least 50 consecutive years of dividend increases. Walmart's own streak currently stands at 52.

Most businesses don't survive that long, let alone pay dividends that long, let alone increase their payouts every single year for that long. That speaks volumes about the strength of Walmart's underlying operations. Investors can expect the company to maintain this approach for a long time. Walmart's significant retail footprint in the U.S. grants it a considerable advantage. Some 90% of the population lives within 10 miles of a Walmart location.

Further, the company has developed a strong brand association with low prices. This doesn't just mean its prices are lower. It also means that consumers expect them to be and will gravitate toward the company's stores when looking for deals. And as Walmart is currently demonstrating, it can find ways to do what it needs to continue offering competitive prices even when the going gets rough. Here's one more reason Walmart is a top stock to hold onto for good: The company has never been scared to lean into new technologies.

It recently showed as much again when it struck a deal with OpenAI, which will enable shoppers to make purchases directly on ChatGPT. And even beyond this initiative, it is actively using artificial intelligence to enhance its business in other ways. As Walmart's chief technology officer, Suresh Kumar, said, "A standard search bar is no longer the fastest path to purchase, rather we must use technology to adapt to customers' individual preferences and needs."

These efforts should enable the company to remain competitive in the retail landscape, which has left many legacy retailers behind over the past decade. In short, Walmart has a strong brand associated with low prices, a large footprint with convenient locations for the vast majority of consumers in the U.S., the flexibility to keep prices relatively low even in challenging times, an incredible dividend track record, and the willingness to improve the customer experience through investment in technology. All of those factors (and more) make the stock ideal for long-term dividend seekers.

Prosper Junior Bakiny has positions in Walmart. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.