The Dividend Compass Cup rules are straightforward, we run the two quality, wide moat companies through the Dividend Compass to analyze which is the more interesting investing candidate. Todd Wenning's Dividend Compass scores them 1-5.
First up Exxon Mobil, basically no debt, increasing dividend growth and solid ROE.
Exxon Mobil Metrics
Exxon Mobil scores
Put it all together and you get a sizzling 4.57 five year averages. About the only area Wal-mart struggles is margins, and frankly - how concerned should we be about that? After all, its the Bentonville business model.
Exxon Mobil has a great track record, but Wal-mart is simply playing at a different level here, even their negatives, in my view, are not really that negative and their positives are super impressive. Todd Wenning highlighted a great quote from Neil Woodford - "In the short-term, share prices are buffeted by all sorts of influences, but over longer-time periods fundamentals shine through. Dividend growth is the key determinant of long-term share price movements, the rest is sentiment." Based on their cover, and their commitment to raises, looks like plenty of dividend growth ahead for Wal-mart. They are through to the Final Four where they await the winner of Baxter and CH Robinson