The DivGro Weekly—30.12.22

118 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividend from Nike, meaningfully higher than this time last year.

Having marked our calendars, we look forward to shortly receiving our quarterly dividends from American Tower and FirstService.

Since DivGro's inception we have predicted and benefited from 118 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.2%.

American Tower, our global leader in wireless communication infrastructure, raised its dividend earlier this month by another 12.2%. This brings our cumulative American Tower dividend increases to 69.6% since we first established our position at DivGro's inception. American Tower enjoys unique visibility into its future earnings given that its customers - primarily mobile telecommunication service providers - agree to extended leases, often 15+ years, with generous upward escalators in favour of American Tower. This rare willingness for customers to commit to such long leases is because mobile operators are acutely aware that data consumption grows consistently and exponentially over time, while new tower spots are not often available, if ever, in any location already serviced by a tower. With a growing portfolio of 223,000 towers, and enjoying the favourable dynamics of growing data demand and limited geographical supply, American Tower is very well positioned to continue its excellent dividend growth record long into the future.