Login | June 23, 2026
Why Walmart moved
Motely Fool
Published: June 23, 2026
Q. I read that Walmart left the New York Stock Exchange (NYSE) last year and is now listed and trading on the Nasdaq stock market. Why? -- T.P., LaCrosse, Wisconsin
A. There are several possible reasons, such as cost, image and listing requirements.
The NYSE dates back to 1792, and many consider it more prestigious. Companies listed on the NYSE include Berkshire Hathaway, ExxonMobil, Bank of America, Coca-Cola and Home Depot. The Nasdaq started in 1971 as a computerized trading system, and it's now home to gobs of fast-growing tech companies, among many others. Its listings include Apple, Microsoft, Amazon.com, Costco Wholesale and PepsiCo.
Walmart's reasoning seems tied to its image, as it explained: "The move to Nasdaq underscores the strong alignment between Walmart and Nasdaq's shared values: a technology-forward approach ... and redefining their respective industries through innovation."
Q. What happens to a stock's price-to-earnings (P/E) ratio if the stock splits? -- I.S., Port Charlotte, Florida
A. You might think that the P/E ratio would drop along with the stock price, but it doesn't change. Let's review the (simple) math. A P/E ratio is a stock's price per share divided by the past year's earnings per share (EPS). So a stock trading at $60 per share with an EPS of $5 will have a P/E of 12 (60 divided by 5). If it splits 2-for-1, shares will be priced at $30, and the EPS will also be halved, resulting in an unchanged P/E (30 divided by 2.5 is still 12).
Remember that stock splits are not that meaningful: While you end up with more shares, their prices are reduced proportionately, so your holding's total value remains essentially the same.
Fool's School
Rethinking Debt
It's easy to think of debt as an undesirable thing. You (or a company) borrow money for some purpose, such as buying a car (or buying another company), and then you are on the hook for repaying that money along with interest on the loan.
It's true that for us individuals, being debt-free is great, and that high-interest-rate debt, such as credit card debt, can lead to big financial problems. And when you're researching stocks, generally the less debt each company holds, the better.
Still, debt isn't necessarily a deal-breaker in life -- or investing. Without taking on debt in the form of a mortgage or auto loan, most people could never buy a home or a nice new car. Debt can be necessary to pay for schooling, too. All these forms of debt can enhance our lives, as long as the terms and interest rates are reasonable and the payments are manageable.
Similarly, it's not always bad for companies to carry debt. The infusions of cash that companies get when they take on debt can help them grow -- or even just survive. Too much debt is risky, though, because a company can end up in trouble if, at any point, it doesn't have the cash to make the payments. Even if it does, it will be spending money that it might otherwise have used in more productive ways.
Investors considering companies with debt need to evaluate whether the debt is manageable and whether the money raised and invested is earning more than it costs. For example, imagine you're worried about the debt load of Buzzy's Broccoli Beer (ticker: BRRRP). The notes in its annual report should detail the interest rates it's being charged. If the effective interest rate on its debt is 4% and Buzzy's is putting its borrowed money to work earning, say, 8%, that's not too problematic. But if Buzzy's is generating $500 million in cash each year while owing $800 million in annual interest payments, that's worrisome.
My Dumbest Investment
Bad Blood
I have many regrettable investment decisions. For example, I bought shares of Northfield Labs on news that it was near a synthetic blood substitute, which I thought would be a big seller. I kept buying even as the price declined, and eventually I rode it down to bankruptcy.
Then there was Berkshire Hathaway -- Warren Buffett's company. I bought it in 1996, when it announced a new class of shares that were more affordable. After one year with little movement, I sold my shares. Of course, they've appreciated immensely since then. -- D.R., via email
The Fool responds: Northfield Laboratories spent more than 20 years trying to develop an effective blood substitute, one with a longer shelf life than actual blood. The idea easily excited investors, as the possibility of an unlimited artificial blood supply seemed like a great investment. But in such situations, it can be risky to invest before the product is approved and selling. The Food and Drug Administration (FDA) rejected Northfield's product, and the company started shutting down in 2009.
Berkshire Hathaway has clearly been a great investment. And with many great investments, the trick is to stick with them and let them grow over time, through ups and downs, while you keep an eye on them.
(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)
Foolish Trivia
Name That Company
I trace my roots back to 1935, when a Canadian in the United Kingdom formed an alliance of seven bakeries. I acquired many companies over time, expanding into grocery stores, clothing, animal feed and more. I took on my current name in 1960. In 1964, I bought the Twinings tea company, which is more than 300 years old. My brands today include Mazola, Karo, Fleischmann's, Argo, Patak's and Primark, though I plan to spin off my Primark retail business by 2027. My recent market value was near $18 billion, and I employ around 138,000 people worldwide. Who am I?
Last Week's Trivia Answer
I trace my roots back to 1993, when I was founded by a former Haagen-Dazs and SlimFast executive. (He is now the CEO of a cannabis company.) I grew by acquiring many other companies -- including, in 2000, the Celestial Seasonings tea company. My current brands include The Greek Gods yogurt, Earth's Best Organic and Ella's Kitchen baby and kids' foods, Joya and Natumi plant-based beverages, and HartleyÕs jelly. I've struggled in recent years, and my market value was recently just $66 million. My recent earnings report featured shrinking revenue, but also shrinking debts and losses. Who am I? (Answer: Hain Celestial)
The Motley Fool Take
Growth and Dividends From Real Estate
While most dividend-paying stocks pay their shareholders quarterly, Realty Income (NYSE: O) is one of the relatively few that pay each month.
As a real estate investment trust (REIT), to be exempt from corporate income taxes, it must return at least 90% of its income to shareholders as dividends. Realty Income has paid a dividend for 670 consecutive months and has increased its dividend for 31 consecutive years. Its dividend yield was recently a hefty 5.2%.
Realty Income's dividend is highly reliable because its business generates steady cash flow. It owns over 15,500 properties across all 50 U.S. states, the U.K. and eight other European countries. Its nearly 1,800 tenants span 92 industries; roughly 91% of its base rent comes from tenants operating nondiscretionary, discount or service-oriented retail businesses.
The company's total occupancy rate is a robust 98.9%. It has consistently maintained a rate of at least 96.6% since 2000, a period that included the Great Recession and the COVID-19 pandemic's early years. And its historical median occupancy rate of 98.3% is well above the industry historical median of 94.4%.
Realty Income's growth prospects are encouraging -- especially in Europe. That makes it likely that its juicy and growing dividends will continue to flow each month, as they have for decades. (The Motley Fool owns shares of and recommends Realty Income.)
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