The DivGro Weekly—27.01.23

120 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when MarketAxess and S&P Global raised their quarterly dividends, and we received our quarterly dividends from Heico and Roper.

Having marked our calendars, we look forward to shortly receiving our quarterly dividends from Zoetis and Lowe's.

Since DivGro's inception we have predicted and benefited from 120 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15%.

Lowe's, together with Home Depot (another DivGro holding) dominate the home improvement space in North America. In its latest earnings release Lowe's declared a dividend of $666 million (amounting to a 31% dividend increase on a per share basis) and concurrently announced a discretionary bonus to front-line employees of $200 million. As we wrote in our latest investor letter earlier this week, it must be clear to its employees that the performance of the underlying business, its dividend trajectory, and the likelihood of increasing worker bonuses and improving prospects are developing hand in hand - assuredly a motivating force. With a driven workforce, significant structural advantages versus fragmented competitors and a long runway to continue to take market share, Lowe's is ideally positioned to extend its stellar dividend growth record well into the future.