The DivGro Weekly—28.01.22
89 Consecutive dividend increases
This week MarketAxess increased its quarterly dividend by 6%, and we became entitled to our quarterly dividend from Roper Technologies.
Since DivGro's inception we have predicted and benefited from 89 consecutive dividend increases at an average annual increase rate of 14.4%.
MarketAxess is the global leader in its segment of online fixed income trading. The MarketAxess platform provides participants with better, faster, cheaper, and more transparent trade execution, compared with the legacy approach of trying to interact with brokers by phone (with all its shortcomings). To reinforce its dominant market position, MarketAxess shares with its customers a significant portion of the cost savings it creates. These customer savings, which take the form of reduced brokerage and tighter spreads already exceed $550m per year. As in most domains, it appears only a matter of time before the efficiency benefits of online trading will gradually usurp the market share remaining with antiquated telephone-based interactions. Since MarketAxess enjoys the lion's share of the approximately 25% of the traded volume that has already moved online, it is very well placed to extend its excellent dividend growth record, having raised its dividend at a compounded average annual rate of 19% over the last 13 years.