The DivGro Weekly—28.04.23

131 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Costco raised its quarterly dividend by 13.3%.

During the week we also collected our quarterly dividend from Roper and became entitled to our quarterly dividends from L’Oréal, Lowe's and Hermès, all significantly higher than this time last year.

Since DivGro's inception we have predicted and benefited from 131 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.5%.

Based in Paris, Hermès is our 186-year-old ultra-luxury leader, specialising in leather goods, primarily bags and shoes, and lifestyle accessories. Hermès retains an unwavering commitment to the finest craftmanship coupled with a marketing strategy focused exclusively on the most well-heeled clientele. While competitors are from time to time tempted into widening their product lines and price points to broaden their demographic appeal, Hermès, by staying narrow in both product and customer, fortresses its brand and market position. In doing so Hermès protects and reinforces its desirability in the eyes of both existing and prospective customers while taking a disproportionate share of the profit pool in its space. This privileged position provides Hermès a superb base from which to extend its already excellent dividend record, having just increased its dividend by 62.5%.