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Wal-Mart is offering around $20 per share to Massmart stockholders, for a total of about $2 billion. Massmart's board of directors has approved the deal, and is recommending Massmart shareholders accept it as well. If successful, the move would give Wal-Mart its first foothold in the African continent. Massmart currently runs approximately 290 stores in 14 African countries, most of which are in South Africa.
The Bottom Line
Shares of Wal-Mart Stores have a 2.25% dividend yield, based on Friday's closing stock price of $53.74. The stock has technical support in the $50-$52 price area. If the shares can firm up, we see overhead resistance around the $56-$58 price levels. We would remain on the sidelines for now.
Wal-Mart is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
