Walmart’s international operations are driving strong sales growth, with a 11.4% increase in constant currency and a 16.9% jump in operating income in the third quarter. CEO Doug McMillon highlights the positive impact of international business mix changes and lower e-commerce losses. China serves as a testing ground for innovations that impact global operations.

India showcases Walmart’s platform strategy on a large scale, with Flipkart and PhonePe dominating their respective categories. The company’s international advertising business grew 34%, driven by Flipkart. China’s Sam’s Club saw a 34% jump in membership income, contributing to high-margin revenue streams that improve overall profits.

As international operations become more profitable, Walmart’s earnings trajectory looks positive. The company’s dividend payout ratio is conservative, providing room for increased distributions as earnings grow. With the transition of international operations from a headwind to a tailwind, dividend investors can expect significant increases in the future.

Walmart’s stock is set to move to NASDAQ, reflecting the company’s tech-driven approach. The focus remains on investing in the business, maintaining dividends, and returning excess cash through buybacks. The international digital commerce transformation, especially in China and India, is reshaping Walmart’s earnings potential, paving the way for increased dividend payouts above historical levels.

Read more at Yahoo Finance: Walmart’s stock dividend may surge due to India, China