The DivGro Weekly—29.07.22

103 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when both Cintas and MSCI increased their dividends by a material 21% and 20% respectively.

We also collected our quarterly dividend from Watsco.

Since DivGro's inception we have predicted and benefited from 103 consecutive dividend increases at an average annual increase rate of 15.7%. 

At the same time as raising its dividend 21%, Cintas chose to reward shareholders with an added benefit by announcing another significant share buyback. These concurrent actions demonstrate that when you have a proven, dominant market leader providing a critical service in a growing and fragmented industry good things tend to happen. Although uniforms, fire safety and first aid solutions may appear mundane, Cintas earns an effective royalty on its customers' growth, while leveraging its scale advantages to consistently take market share. Cintas has been a DivGro holding since inception and has already delivered five dividend increases, raising our quarterly dividend stream by a cumulative 124%. Due to the indispensable nature of its services, privileged position and long runway ahead, Cintas is ideally positioned to extend its spectacular dividend growth record, having raised its dividend every year since its 1983 IPO at an average of 19% per year.