The DivGro Weekly—10.12.21

85 Consecutive dividend increases

This week Zoetis increased its dividend by 30%.

Since DivGro's inception we have predicted and benefited from 85 consecutive dividend increases, with an average annual increase rate of 14.6%.

We also received our dividends from Microsoft and Visa, and became entitled to our dividend from Nike.

Spending much more aggressively than anyone else could possibly match, Nike locks in the sponsorship of a disproportionate share of the world's best athletes. In doing so Nike effectively blocks competitors from accessing the best talent, while the association with the most elite athletes elevates brand desirability, in turn enabling premium pricing leading to superior margins. The hidden benefit of these endorsements is that the association with the world's best athletes encourages Nike's customers to proudly wear (i.e. advertise) swoosh-emblazoned merchandise - giving Nike an ongoing return on endorsement expenses incurred in the past. These cumulative advantages have underpinned Nike's very high and rising profitability, underwriting vigorous dividend increases for each of the last 20 years.