The DivGro Weekly—01.03.24

158 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when SBA Communications and Domino’s increased their quarterly dividends by 15.3% and 24.8% respectively. We received our quarterly dividend from MSCI and became entitled to our quarterly dividends from S&P Global and Moody’s, all higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 158 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.9%.

Domino’s

Domino's, the original pioneer of pizza delivery, continues to operate within a competitive latticework that has differentiated the company, and enabled it to outpace others, since 1960. The keys? It is both owner-oriented and customer-oriented. Whereas many franchisors are imperilled by bureaucratic or knowledge gaps that silo franchisees, Domino's franchisees are intrinsically linked to the business from the outset. By beginning as delivery drivers or pizza makers, they invest significant time and interest in Domino's success, developing into excellent franchisees and enmeshing the company's ambitions with their own, thus eliminating unfit candidates. The benefits inhere within customers too: a beloved product, offered at a budget-friendly price with in-house delivery or pick-up options, provides a compelling and thrifty antidote to third-party delivery services that squeeze profits via hiked prices on menu items and hefty delivery fees. A new partnership with Uber Eats, then, is demonstrable of Domino's double win: 1) the new platform enables Domino's to win new customers, sharpening the optics of Domino's relative value to competitors on the app and 2) reinforces the value proposition outside of the app, when a pizza is purchased directly. The partnership is further evidence of Domino's mission to share in the proverbial pie — amplified by a dividend increase of 24.8 per cent, an excellent foretaste of what's to come.