If You Bought 1 Share of Walmart at Its IPO, Here's How Many Shares You Would Own Now

It's hard to fathom a world without Walmart (NYSE: WMT). The company opened its first discount store in the early 1960s and conducted its initial public offering (IPO) in October 1970.

If you were lucky and astute enough to buy just one share during its early days as a public company, you'd have many more due to subsequent stock splits.

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Exactly how many shares would you own? Tracking the stock split history and doing some multiplication will provide the answer.

Image source: Getty Images.

Growing share count

Walmart has declared 12 stock splits since its IPO. Most were 2-for-1 splits, but the exception was February's 3-for-1 split.

Every time a 2-for-1 split occurred, your share count doubled, and the number tripled in February. Hence, your one share turned into 6,144 shares.

The unadjusted split price was $16.50. While your share count went up, the price went down by the same portion. That means the $16.50 becomes a split-adjusted $0.0027 (i.e., well below a penny a share). The stock closed at $94.25 on Dec. 13, giving long-term investors a handsome gain.

You also would've collected dividends for more than 50 years. Walmart's first quarterly payout was in March 1974, and the board of directors has subsequently raised them each year. That makes the company a Dividend King.

It last increased the quarterly payout in February. Walmart currently pays $0.2075 per quarter, up more than 9% from the previous year's split-adjusted $0.19.

Walmart's simple business plan, keeping costs down and passing the savings along to customers, has resonated with shoppers. It has also proven very profitable and rewarding to shareholders. With its ultra-low everyday prices, it's tough for competitors to undercut the company, and this should continue to prove rewarding for patient shareholders.

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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.