U.S. retailer (NYSE: WMT) is an American icon. It's one of the largest companies on Earth, and an estimated 90% of U.S. consumers live within 10 miles of a Walmart store. Additionally, the company, which already has decades of consecutive dividend growth, just hiked the payout by over 9%, a sign of management's confidence in Walmart's prospects.

So, why is Walmart poised to underperform the broader stock market over the next five years? As Warren Buffett once said, "Price is what you pay, value is what you get." Walmart may have built its dominance by providing unbeatable value to shoppers, but investors aren't afforded the same value today.

There's nothing controversial here. Walmart is a Dividend King and a great business. It has size and leverage with vendors that arguably nobody else does, meaning it can sell groceries and goods for less than anyone. But a great business can be a lousy stock when everyone already loves it. That's what is happening here.

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Source Fool.com