The DivGro Weekly—28.02.25

188 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when Danaher increased its dividend by 18.5%; SBA Communications increased its dividend by 13.3%; and Home Depot increased its dividend by 2.2%. We also received our quarterly dividend from Costco and became entitled to our quarterly dividend from Microsoft, both meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 188 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.60%.

SBA Communications

SBA Communications has been a DivGro holding since inception — which, notably, coincided with the declaration of the company’s maiden dividend in 2019. The fast-growing, US-centric mobile infrastructure landlord has grown its dividend with aplomb, already tripling since initiation. How so? Wireless towers are an especially prized asset. In every municipality, residents demand 24/7 mobile coverage — but those same residents vehemently oppose additional towers, meaning that typically, only one tower is approved per geographic domain. This monopoly furnishes the tower landlord with unusual latitude with its customers (namely the mobile carriers), who have little choice but to accept lengthy leases, up to 15 years, with generous annual escalators that favour the tower owner. This unique dynamic, coupled with the low maintenance and upgrade costs of towers, as well as the uptick in data demand, plays neatly into SBA’s set of privileges. Accordingly, with time, the profitability of each tower increases steadily and with high visibility, providing a foreseeable pathway for the expansion of SBA’s excellent dividend trajectory.