While Big Oil stocks like Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) should reward long term investors, the short term performance has been painful. That is much the same for the stock markets overall as both the Dow Jones Industrial Average (NYSE: DIA) and the Standard & Poor’s 500 Index (NYSE: SPY) have been doing poorly too in recent trading. But the world’s biggest retailer, Wal-Mart (NYSE: WMT), continues to do well, rewarding its investors such as Warren Buffett.
Wal-Mart is up for the last month, quarter, six months, and year of market action (chart below).
For 2014, Wal-Mart is up by 9.20 percent. Big Retail is outperforming Big Oil in this market. While that could easily change as ExxonMobil and Chevron are excellent companies with bullish futures, any dips in Wal-Mart should be looked upon as a buying opportunity to get in at a discount.
That is much the same with Chevron, ExxonMobil other energy companies as all do better when the global economy is growing.
Wal-Mart operates around the world. It is particularly strong in China. When the China market is booming, Wal-Mart does much better. That is the same with Chevron, ExxonMobil, and other oil and natural gas firms. Due to its size, a market capitalization of just over $270 billion, Wal-Mart will never be a booming a growth stock. But it does deliver the steady, reliable growth that long term investors need in a core holding.
The total return from Wal-Mart is enhanced with its dividend income.
Wal-Mart is a Dividend Aristocrat. To earn that title, a publicly traded company must have increased the amount of the dividend annually for at least the past 25 years. For the long term shareholders who do not sell Wal-Mart, a raise is received every time the dividend is increased. For income investors, that is very appealing.
The overall return of Wal-Mat is very attractive to all long term investors!