The Walmart Absorption Effect

Let's face it. No matter where you spend your money, there is going to be a rather significant portion that is going to ultimately wind up in the cash register at Walmart. Why is that? Because for all the haters, the fact is that most people actually shop at their stores.

This is why it just makes sense to own Walmart stock.

If you eat out at a restaurant, the waitress will likely spend a portion of her income at Walmart. Same goes for the dishwasher, the bus boy, and even the guy who trucks in the supplies and food for the restaurant.

They will all spend a portion of their money at Walmart.

Go to a gas station for a fill up and a Coke? The cashier will likely be spending a portion of their paycheck at Walmart. Spend at The Dollar Tree or Dollar General? I bet the workers there will spend a portion of their paycheck at Walmart.

The fast-food worker? They are going to spend a portion of their paycheck at Walmart too. From food stamps to social security checks? A large portion of that money will also be spent at Walmart.

Everyone shops at Walmart even if they tell you they don't because let's face it as well, Walmart simply offers everything under the sun at a value that even the die-hard haters can't pass up.

Beyond that, one has to admit that despite Walmart being a retailer in the retail sector, it is as diversified as stocks can be when you really get down to it. Because it carries pretty much anything under the sun. Call it an ETF of sorts that holds some sort of value in Unilever, Proctor & Gamble, Georgia-Pacific, Colgate-Palmolive, Kraft Foods, and any number of other companies both public and private.

Owning Walmart stock means you own a piece of every bit of spending happening in their stores. And likely you will shop there as well, meaning every dollar you spend will have a tiny discount attached to it when you get your quarterly dividend check.

Granted, it's not a fantastic yield at 1.47%, or $2.28 per share on an annual basis. But sharing in the profits of the largest retailer in the world that will capture the lion's share of every single paycheck that exists seems to me like a great thing to own, and I think everyone should own at least a few shares.

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