The DivGro Weekly—29.04.22
98 Consecutive dividend increases
This week we received further real-time, tangible evidence of outstanding business progress when we received our dividends from American Tower, Stryker, Watsco and Evolution AB.
We also became entitled to our dividend from L'Oréal.
Since DivGro's inception we have now predicted and benefited from 98 consecutive dividend increases at an average annual increase rate of 15.3%.
American Tower, our global leader in wireless communication infrastructure, enjoys an especially privileged structural advantage. Across its portfolio of over 220,000 towers, its operating costs, including tower maintenance, are extraordinarily low. At the same time, it benefits from pre-agreed annual price escalators in all of its customer contracts. These price escalators take the form of either absolutely high increases, or inflation- plus increases. This means American Tower is well positioned to extract an extremely wide profit spread under all conditions. This structural edge has enabled American Tower to raise its dividend every quarter since initiating quarterly dividends in 2012 at a compounded average rate close to 20% per year.