The DivGro Weekly—28.07.23

134 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Cintas raised its dividend by 17.4%.

We also collected our quarterly dividend from Roper and became entitled to our quarterly dividend from Lowe's, both higher than this time last year.

Since DivGro's inception we have predicted and benefited from 134 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.4%.

This week we sent out our latest letter to investors, reflecting on the methodology which powers our dividend growth oriented system and why we believe it is so effective. This letter can be accessed here.

Lowe's, our home improvement juggernaut, has been an unrivalled dividend growth champion, having increased its dividend every year since its 1961 IPO at a compounded rate above 15% per annum. Together with Home Depot (another DivGro Holding), Lowe's enjoys a privileged position in the North American home improvement space, with these two giants commanding more than 30% of the industry. Since the rest of the market is highly fragmented, Lowe's and Home Depot's relative size and scale translate into significant cost and price leadership, making it effectively impossible for others to compete. Indeed, it is often whispered that their many small competitors are only allowed stay in business at Lowe's and Home Depot's discretion. This fortress-like position, coupled with the endless need for home repair and maintenance, provides Lowe's an inviting runway to extend its superb dividend record long into the future.