The DivGro Weekly—14.06.24

163 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Moody’s, S&P Global, Wingstop, Microsoft and Home Depot, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 163 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.8%.

Moody’s

Moody’s — together with DivGro holding S&P Global — is the de facto debt rating standard-bearer and dividend grower par excellence, with a dividend that has cumulatively swelled 850 per cent since 2010. Together with S&P Global, Moody’s market power is effectively unrivalled, underpinned by a potent truth: even if an aspirant competitor offered a free rival debt rating service, it would not make sense for customers to indulge in it. Why? Without Moody’s (or S&P Global’s) stamp of approval, the interest incurred on the debt service will be much more burdensome, while the cost of Moody’s service is trivial in comparison. That most governments want to avoid debt defaults only serves to tighten Moody’s industry stranglehold; service providers are regulated and seldom approved, meaning Moody’s legacy of more than 100 years of market expertise and reputation becomes increasingly valuable over time. As the company leverages these advantages into adjacencies like financial disclosures compliance, it fortifies the core debt ratings franchise with highly profitable, high-growth businesses, protecting and propelling its dividend growth trajectory for the long haul.