The DivGro Weekly—13.01.23

118 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we became entitled to our quarterly dividends from Heico, Intuit, Mastercard and Roper, all materially higher than this time last year.

We are pleased to report that next week DivGro will be paying its 13th consecutive quarterly distribution. This distribution is 11.5% higher than the same time last year.

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%.

Mastercard, established as a cooperative amongst banks in 1958 has developed over decades into one of the world's most ubiquitous companies, and together with Visa (another DivGro holding) sits at the apex of the digital payments ecosystem. Counterintuitively, while many companies are forced to adapt to an inflationary environment, Mastercard and Visa stand to benefit directly since most of their earnings come from clipping the ticket at the gross payment processing level. Also, they have benefited further from an improvement in the competitive landscape because funding for aspiring entrants has either become more expensive or dried up completely. As we have become accustomed, Mastercard increased its dividend in December, this time by 16.3%. The above tailwinds bode especially well for Mastercard to extend its already stellar dividend growth record since its IPO in 2006.