Whole Foods Market Stock Dividend

Whole Foods Market (WFMI) is a specialty grocery chain catering to affluent customers who want organic and healthy foods. The chain has 284 stores. The majority of them are in located throughout the U.S., however, it also has a few locations elsewhere. Whole Foods recently bought out its arch rival, Wild Oats, in a calculated move. This makes Whole Foods the most sizable global retailer of organic foods with no close competitors. Other retailers, such as the behemoth Wal-Mart (WMT), are expanding their offerings of natural and organic products in response to consumer demands. It has yet to be seen if this has affected Whole Food’s Business.

This particular stock has been very volatile over the past year, from a low of around $17 to a high of around $43. The stock appears to be on an upswing. The price has recovered with the overall market and sales and earnings are both up relative to a year ago.

John Mackey, CEO, stated in the most recent quarterly earnings report that the business has come out of the recession with a better balance sheet as well as a more disciplined approach to capital spending. Newly-opened Whole Foods stores are performing well. The company is trying to increase its per square foot. As the economy improves and customers have more disposable income to spend, Whole Foods should benefit too.

Unfortunately for all of us dividend investors, Whole foods cut their dividend in 2008.