The DivGro Weekly—24.01.25
177 Consecutive dividend increases
Weekly Dividend Progress
This week we received further real-time, tangible evidence of outstanding business progress when we received our quarterly dividends from Heico, Intuit and Roper. We also became entitled to our quarterly dividends from Watsco and Zoetis, all meaningfully higher than this time last year.
How We Are Tracking
Since DivGro's inception we have predicted and benefited from 177 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.56%.
Distribution
This week, we paid our 21st consecutive quarterly distribution. Notably, this distribution is 11.2% higher than the same time last year. DivGro has grown its distributions each year by at least a double-digit percentage increase. Our quarterly distribution is already 2.3x higher than our first quarterly distribution paid in January 2020.
Watsco
We covered Watsco in our latest interview on ausbiz, which can be accessed here. Since 2000, Watsco has grown its dividend by more than 100x, catalysing a similarly remarkable magnification of its share price. It is an incredible ascent which showcases the power of compounding — and why the company stresses the importance of every quarter, yes, but even more so, every quarter century. So, let’s zoom out. Today, Watsco is the dominant North American distributor of air conditioning and heating systems, equipment and parts (HVAC) — but how did it solidify this enviable position? Here’s how the industry operates: OEM manufacturers supply distributors; distributors supply air-conditioning technicians; and these technicians install, repair and maintain systems for the end user. This supply chain inevitably creates choke points, where technicians depend on distributors to supply systems, equipment and parts efficiently, reliably and cost-effectively. Add to that the dynamic of extreme and humid climates, such as Watsco’s Florida home base, where fixing out-of-operation systems is deemed an urgent need, and an environment is established wherein successful technicians are dependent upon the fastest and most reliable distributors. Naturally, these factors play into Watsco’s hand: its heavy dominance (Watsco is larger than its major competitors combined) translates into the highest location density, broadest inventory, cheapest prices and importantly, fastest fulfilment. Simply put: Watsco is the finest option for technicians and a key determinant in the success of their businesses. With more than 120 million systems currently installed in the US — all on a predictable trajectory towards repair or replacement — the path ahead invites Watsco’s expansion of its formidable dividend record.