6 Reasons Wal-Mart Is A Retail ETF Bright Spot

Wal-Mart (WMT) sales performance for the month of February beat analysts expectations, and gave a boost to the retail sector, and related exchange traded funds (ETFs).

Among the reasons for the success of this discount chain:

• Wal-Mart is raising its stock dividend by 15%, to $1.09 per share. Many other companies have done the opposite, some even forgoing payouts to make up for the slowing economy.
• Wal-Mart is diversified - it’s everything to everyone. Clothes, food, games, plants, bedding and more, it’s all right there and at low prices.
• Falling gas prices gave consumers more disposable spending money than earlier on, but not so much that they’re ready to splurge.
• The discount chain has been doing well because of the upswing in bargain-hunters and consumers trading down from name brands to generic items.
• As consumers stay home for dinner, they’re needing more equipment to fix their budget feasts - enter Wal-Mart and its inexpensive appliances and cookware.
• They’re ubiquitous. Chances are, you’ve got a Wal-Mart in your neighborhood. Check out this hypnotic map of how it’s expanded across the country since its humble beginnings in 1962.

The world’s largest retailer reported a 5.1% increase in sales at U.S. stores open at least a year, however, there is nothing certain that stabilization has occurred, reports Kerry R. Grace for The Wall Street Journal . Retail sales rose 0.3% in February according to final figures from Thomson Reuters. A 1.2% drop was expected, reports Karen Tally for CNN Money. Discounters carried the day, with comparable store growth of 2.9%.

• Retail HOLDRs (RTH): down 16% year-to-date; Wal-Mart is 26.9%

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