The DivGro Weekly—09.06.23

133 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Microsoft, Moody's and Wingstop, all significantly higher than this time last year.

Having marked our calendars, we look forward to shortly receiving our quarterly Nike dividend, meaningfully higher than the same time last year.

Since DivGro's inception we have predicted and benefited from 133 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.3%.

Wingstop, our increasingly successful chicken wing quick service restaurant format just celebrated the opening of its 2000th location. A natural benefit of a growing franchise footprint is the collective advertising budget growing in tandem, even though each individual franchise continues to contribute the same percentage of their sales. Wingstop's brisk store rollout has enabled a recent step-up from relatively ineffective localised advertising to much more productive and efficient national advertising, including associations with premium properties such as the NFL and NBA. Predictably, this advertising upgrade has led to growing sales in existing locations as well as increasing demand for new franchises, further boosting Wingstop's collective advertising resources. This reinforcing dynamic propels Wingstop's ability to extend its superb emerging dividend growth record, having risen at a compounded average annual rate above 20% since initiating quarterly dividends in 2017.