The DivGro Weekly—22.12.23

148 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when American Tower increased its dividend by 9% and Abbott Labs by 8%. We also received our quarterly dividends from Microsoft, Moody's, Cintas, SBA Communications and Home Depot, all much higher than this time last year.

Since DivGro's inception we have predicted and benefited from 148 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15%.

Home Depot, an exemplary standard-bearer of dividend growers, has multiplied its dividend by 4700x since its first dividend in 1987. This outstanding feat is owed to its cost leadership; together with Lowe's (another DivGro holding), Home Depot benefits from a growing share of annual spend on repair and maintenance works commensurate with the aging, wear and tear of 140 million American homes. This engenders a powerful simultaneity that enhances Home Depot's rock-solid position. How so? 50 per cent of American homes are more than 40 years old. While they deteriorate, they also tend to become increasingly valuable assets as real estate gradually appreciates, therefore inclining homeowners to undertake regular repairs and ballasting Home Depot's installed base with each passing year. With time on its side, these dynamics reinforce Home Depot's sunny future, buttressed by its opportunity to expand its market share and extend its dividend horizon.

This week we were interviewed on ausbiz to discuss Pool Corp, our leading distributor of pool supplies and equipment. We covered how it has grown from a two-person operation to dominant global leader, underpinning its stellar dividend growth record. Click here to access the interview.