Dividend Compass Cup Match 12- CH Robinson vs Baxter
Money and Finance

Dividend Compass Cup Match 12- CH Robinson vs Baxter


For the final match to determine our Final Four its CH Robinson versus Baxter.  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.




CH Robinson shows dedication to growing its dividend, however its FCF cover is slowing as of late. The company has software-like ROE numbers and a clean balance sheet.

CH Robinson metrics
CH Robinson puts up good marks across the last five years but there is some wear and tear showing. ITs FCF cover is stalled for last two years and this account for a quarter of the Dividend Compass score leaving CH Robinson a notch below a 4.0 score for 2012. Its five year average still clocks in at a respectable 4.27

CH Robinson scores

Over on the Baxter side of the ledger, we see only one area that looks problematic with slowing FCF cover. Otherwise, Baxter is knocking it out of the park on double digit dividend growth and other key areas of the Dividend Compass.

Baxter metrics


Baxter scores many perfect 5s, its five year average is a robust 4.86. Great margins and ROE. Its on a very good run, though investors should continue to pay attention to FCF Cover and slowing earnings cover to see if that is a canary in a coalmine. Other than that, this is a business that reliably delivers the goods for income investors.

Baxter scores

CH Robinson has a good track record, but Baxter is nothing less than great and Baxter is through to the Final Four to face Wal-mart







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