The former Manchester City midfielder completed a deadline day move to Stoke from Aston Villa and Walters is delighted with new manager Mark Hughes' latest signing.
"I think the best years of his career were under Mark Hughes at (Manchester) City so it's great for him to join us and great competition for places now in midfield," he said.
"We now have five or six top quality midfielders, so it is great to have the numbers and can only benefit us all."
Walters is also pleased to see James McCarthy join Everton from Wigan and hopes the move will help the midfielder's career at international level.
"I think he is delighted to get the move. I'm an Everton fan as well, so I'm delighted for him," Walters added.
"He's gone to a great club and obviously he's got friends there with Seamus (Coleman) as well, going to a manager he knows who trusts him. It's a great move for him."
You can see the Republic of Ireland's World Cup Qualifier against Sweden on Sky Sports 2HD this Friday at 7.30pm