The DivGro Weekly—23.12.22

118 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Heico increased its dividend by 11.1%.

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%.

We received our quarterly dividends from Home Depot, Cintas and SBA Communications, all materially higher than this time last year.

Heico, our replacement parts manufacturer for the aerospace industries has grown its portfolio of regulator-approved parts from essentially none to 13,000 over the last 30 years. Since regulations stipulate replacement cycles on either per-use or per-time bases, future demand for Heico's products seems assured. Time sensitive end-users, such as airlines, cannot tolerate unnecessary downtime so they choose instead to maintain relatively high levels of spare part inventories. In trying to minimize this inventory cost, customers are naturally drawn to Heico's products which represent the lowest cost solution, typically saving approximately 30-50% relative to Heico's OEM competitors. With most modern aircraft comprising well in excess of a million parts, Heico enjoys an extensive growth runway, which bodes well for the continuation of its stellar dividend growth record.