3 Reasons to Buy Walmart Stock Like There's No Tomorrow

Walmart (NYSE: WMT) shared some exciting news last week with the announcement of CEO Doug McMillon's retirement. McMillon has shepherded the company for the past decade, bringing its digital channels up to par and protecting the company's economic moat. However, he's moving on, and Walmart veteran John Furner will be taking the reins on Jan. 31, 2026.

The announcement didn't make many waves because for solid companies that run well, it's just a handover. Investors don't expect any big changes at Walmart, which is going from a longtime veteran CEO, who started at the bottom, to another longtime veteran, who started at the bottom.

These executives know the company inside out, and Furner isn't likely to make any unusual moves. However, there's always innovation happening at Walmart, which is how it keeps its top spot. It's also one of three reasons to buy Walmart stock today.

Image source: Walmart.

1. It's still the largest company in the world

Despite constant competition from companies like Amazon, Walmart is still the largest company in the world by sales. While size doesn't guarantee longevity or greatness, it indicates a company that's doing things right. Walmart is so big that it would be difficult for any competitor to knock it down. It's also been holding up well in the face of challengers, demonstrating consistent growth and keeping its lead.

The company has 4,700 stores in the U.S alone, well ahead of any other retailer, and more than 10,000 stores worldwide. While the U.S. is its core business, it's well-diversified globally. In the U.S., it also has Sam's Club, which has a warehouse membership model and competes with Costco Wholesale.

It does look like Amazon is going to take the lead, and that's likely to happen next year. But Walmart will remain the largest physical retailer even when that does happen, and its e-commerce business is giving Amazon a run for its money.

2. The more things change, the more they stay the same

Walmart was late to the e-commerce game, allowing Amazon to move retail into e-commerce quickly. However, it got itself together and now has a formidable e-commerce business.

E-commerce has been its biggest growth driver over the past few quarters, and Walmart has tailored it to its strengths. For example, it has a huge network of U.S. stores that can act as delivery hubs and quickly fulfill orders. They're also close enough to most U.S. households to make it easy to pick orders up faster than even Amazon can get them to customers' doors, as 90% of Americans live within a 10-mile radius of a Walmart store. E-commerce sales increased 25% year over year in the 2026 fiscal third quarter (ended July 31), with a 26% increase in the U.S.

The company is innovating in other ways, too. It's bringing new lines of products to appeal to different populations and broaden its target clientele and has launched a range of healthcare services at some stores. Last year, it bought streaming company Vizio to expand its advertising business.

These are necessary actions to stay relevant and dominant in a changing world.

3. It's a Dividend King

Walmart is a Dividend King and has raised its dividend for the past 52 years straight. That's through all kinds of ups and downs, including a global pandemic and inflation, and demonstrates complete commitment to creating shareholder value. That's an important feature in a reliable stock.

Walmart doesn't pay a high-yielding dividend -- yielding only 0.9% at the current price. But shareholders can count on it through thick and thin, making it an excellent stock to own in any climate, especially when the market is volatile.

Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.