Everything You Need To Know About The Walmart Stock Purchase Program In 2023
If you work at Walmart, you may be wondering if it‘s worth signing up for the company‘s Associate Stock Purchase Plan. This optional program allows Walmart employees to buy Walmart stock and receive partial matching contributions.
But how does it actually work, and what are the pros and cons of participating?
As an experienced investor and successful Amazon seller, I‘ll provide an in-depth look at Walmart‘s stock purchase program so you can make an informed decision. Whether you‘re investigating cool corporate perks or researching future early retirement plans, let‘s delve into the details!
How Walmart‘s Employee Stock Purchase Plan Works
Walmart offers an Associate Stock Purchase Plan as part of its comprehensive benefits package. This program allows eligible employees to conveniently purchase Walmart stock and receive partial company matching.
Here‘s an overview of how it works:
Enrollment Fee: Pay a one-time $20 fee to enroll in the plan
Minimum Investment: Invest at least $250 initially or commit to $25 per pay period deductions
Company Matching: Walmart will match 15% of the first $1,800 you invest per calendar year
Annual Limit: Invest up to $125,000 per calendar year
Dividends: Receive Walmart‘s annual cash dividends, around $2.20 per share currently
Sell Anytime: You can sell your shares at any point (fees apply)
By participating, you get to share in Walmart‘s success each year through matched funds, dividends, and any stock growth. Not bad!
Now let‘s look at the step-by-step process to enroll.
How To Sign Up For The Walmart Stock Purchase Plan
Signing up to start buying Walmart stock is easy. Just follow these steps:
Set up an account on Computershare‘s Associate Stock Purchase Plan portal. This is Walmart‘s designated broker.
Accept the terms and conditions of Walmart‘s program.
Make an initial contribution of at least $250 or enroll in payroll deductions of $25 per pay period.
Pat yourself on the back for taking advantage of this nice little perk!
Once your account is established, you can log in online or via the OneWalmart app to manage your stock purchases and holdings.
I‘d recommend setting up automatic $25 payroll deductions if possible so you can maximize Walmart‘s annual matching without thinking about it.
Now let‘s get into the fun stuff – the details on Walmart‘s matching contributions!
Walmart Will Match 15% Of Your Stock Purchase – Up To $270 Per Year
One of the best parts of Walmart‘s Associate Stock Purchase Plan is the company matching.
Walmart will match 15% of the first $1,800 you invest per calendar year. This ultimately means up to $270 in "free" money from Walmart‘s contributions.
Here are some examples to illustrate how the match works:
If you invest $1,800 in a year:
- Your contribution: $1,800
- Walmart‘s 15% match: $270
If you invest $900 in a year:
- Your contribution: $900
- Walmart‘s 15% match: $135
So by investing at least $1,800 each calendar year, you maximize the company‘s 15% matching funds.
While Walmart won‘t provide any match above $1,800 invested, you can purchase up to $125,000 in stock per year if you wish.
Walmart‘s Annual Dividends Add Up Too!
In addition to the matching funds, Walmart also pays yearly cash dividends to shareholders.
Their dividends have increased for 48 consecutive years – a seriously impressive streak!
In 2022, Walmart paid an annual dividend of $2.20 per share. So the more shares you accumulate over time, the bigger your annual dividends.
For context, if you purchased 150 shares over the years, you‘d earn $330 in dividends in 2022. Not too shabby!
You Can Sell Your Shares At Any Time
While the goal is to let your Walmart investment grow over many years, you do have the flexibility to sell your shares at any point.
When you want to liquidate shares, simply log into your Computershare account and place a sell order.
Just keep a few things in mind:
You‘ll pay a small transaction fee each time you sell shares.
The sale price per share depends on Walmart‘s current market value.
Once sold, expect proceeds in your bank account within 1-2 weeks.
Selling shares before one year results in higher capital gains taxes.
Being able to access your investment does provide nice peace of mind. But ideally you want to hold long-term for maximum tax efficiency.
What Happens To Your Stock If You Leave Walmart?
If you part ways with Walmart, you have a couple options with your accumulated stock:
Cash out – Sell your shares and receive the cash value once the sale completes. Expect proceeds about 10 days after Walmart gets notice of your intent to sell.
Keep your account – For a $35 annual maintenance fee, you can retain your Computershare account and continue buying Walmart stock.
If leaving Walmart, I‘d suggest cashing out your shares once you get your final paycheck. This ensures you avoid extra fees.
But maintaining the account allows you to continue investing in Walmart if desired. Either way, the choice is yours!
Pros and Cons of Walmart‘s Stock Purchase Program
Let‘s do a quick rundown of some key advantages and potential drawbacks:
Pros
- Company matching contributions up to $270 annually
- Opportunity to share in Walmart‘s growth and success
- Flexibility to sell shares at any time
- Established company that offers stable dividends
Cons
- Partial match could be higher percentage
- Must rely on Computershare‘s prices for purchases/sales
- Pay transaction fees to sell shares
- Tax implications if shares held less than one year
Overall the positives make this an attractive benefit, assuming you plan to hold shares long term.
Final Thoughts – It‘s Worth Considering for Long-Term Investors
Walmart‘s Associate Stock Purchase Plan with company matching gives employees a nice opportunity to gain partial ownership. By consistently investing over many years, you can accumulate valuable Walmart shares.
If you want exposure to Walmart‘s continued growth and success, it‘s worth signing up. Just be sure to educate yourself on the details so you can optimize the plan.
Feel free to reach out if you have any other questions! I‘m always happy to help maximize investment opportunities and corporate benefits.
