The DivGro Weekly—17.06.22

101 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Cintas and SBA Communications.

Since DivGro's inception we have predicted and benefited from 101 consecutive dividend increases at an average annual increase rate of 15.6%.

Having already marked our calendars, we look forward to receiving our quarterly dividends from Domino's Pizza and Home Depot in the next few weeks. These dividends are substantially higher than this time last year (17% and 15% respectively).

SBA Communications, our faster growing wireless tower landlord, provides infrastructure for mobile connectivity which is expected by the ultimate customer to be always available and dependable. Coupled with this demand profile is that every local area served by each tower is a localized monopoly, protected by the fact that it is invariably undesirable, unsightly, and often uneconomical to have more than a single tower serving any particular locality. This privilege enables SBA (and our sister holding American Tower) to command leases of up to 15 years with automatic, mostly generous, annual escalators. Blessed with such predictable and rising cashflows, SBA has already rewarded us with three substantial annual dividend increases, for a cumulative dividend increase of 93%.