Employee Stock Purchase Plan

I work for Walmart and the Employee Stock Purchase Plan is different than everybody describes on the internet. There is a place to select how much you want to contribute out of every paycheck. It can be changed whenever I chose up or down. They match 15% of whatever I put in. My normal amount is $70 a paycheck that gives me a match of $10.50. The $10.50 is added to my pay and stocks are purchased with the $80.50 every paycheck. Taxes are taken out for the extra $10.50 in pay. There is no buy in fee for the stocks.

Once in the stocks I can sell the stocks and the match for a $25 fee. Obviously you would want to wait a few paychecks to make this worth while. But the money I contributed and the match are mine to do what I want with.

Dividends from owning the stock get reinvested into the stock. Over time this is where you can really make the big bucks. As you have more shares of stock the amount of dividend payout will be greater and purchase even more shares of stocks to earn dividens on.

All in all it’s not a bad deal. It should average out in the long run and you should end up with a lot more than you put in, however with every stock investment there is the possibility of losing money.