The DivGro Weekly—21.04.23

130 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Evolution AB and Intuit, both significantly higher than this time last year.

Having marked our calendars, we look forward to shortly receiving our dividends from Watsco and Zoetis, also much higher than this time last year.

This week we paid our 14th consecutive quarterly distribution. This distribution is 12.1% higher than previously. DivGro has increased its distributions each year by at least a double-digit percentage. Our first quarterly distribution was paid in January 2020 and is now 2.1x higher.

Since DivGro's inception we have predicted and benefited from 130 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.5%.

Intuit, our dominant leader in accounting and tax software for American households and small businesses, has quite remarkably over the last decade increased its customers from approximately 30m to over 100m while adding only 10,000 employees. This sales leverage exemplifies Intuit's key privilege, in that most of its sales function is effectively powered by an "army" of external (i.e. not on Intuit's payroll) independent accounting practices. Given Intuit's ubiquity, coupled with it being the de facto default option, accountants already using Intuit prefer existing and potential clients to adopt Intuit's ecosystem, thereby saving these accountants considerable time and therefore money. Exploiting this entrenched incumbency, and by periodically adding further modules, Intuit is superbly positioned to extend its impressive dividend growth record which has risen at a compounded annualized rate of 16% since initiating quarterly dividends in 2011.