The DivGro Weekly—05.08.22

104 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Wingstop increased its quarterly dividend by 11.8%. 

Since DivGro's inception we have predicted and benefited from 104 consecutive dividend increases at an average annual increase rate of 15.6%. 

We also received our quarterly dividends from Stryker and Lowe's, and look forward to receiving our quarterly dividends from Costco and Texas Instruments shortly.

Wingstop, our fast-growing chicken wing franchisor, opened its doors in 1994 and recently crossed 1850 units. Wingstop benefits from low raw material inputs costs, while its focus on takeaway and delivery enables the operation of smaller format stores in cheaper locations with lower staffing requirements. Taken together, these attributes enable industry leading margins, which in turn underwrite superior store level profitability. Indeed, while most restaurant peers are busy raising prices, Wingstop is not, showcasing its relative attractiveness and value proposition. With franchisees earning around 50% annually on their store investments, its unsurprising Wingstop enjoys a proliferation of candidates seeking to open new stores. This profitability profile, together with open-ended expansion potential, has already led to an enviable dividend growth record, especially when coupled with 'delicious' periodic special dividends.