The DivGro Weekly—01.04.22

97 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Domino's Pizza, Wingstop and SBA Communications.

We also became entitled to our quarterly dividend from Stryker.

Since DivGro's inception we have now predicted and benefited from 97 consecutive dividend increases at an average annual increase rate of 15.4%.

Dating back to 1960 and having recently reached 18,000 outlets, Domino's was the original pioneer of pizza delivery. While many other franchise systems develop a relationship with franchisees that is relatively distant and transactional, Domino's is different. Instead, in its US market (by far its largest), almost without exception every franchisee began their Domino's journey as a delivery driver or pizza maker. This creates a hard to replicate edge where prospective franchisees are intimately familiar in advance with all aspects of their new business, while at the same time Domino's as franchisor has a long and close relationship with its aspiring business partners. This unusually close dynamic significantly increases the odds that any given franchise succeeds and is one of Domino's distinctive drivers propelling its superb dividend growth (5.5x in 9 years) and corresponding share price outperformance.