The DivGro Weekly—08.03.24

160 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when American Express raised its dividend by 16.7%. We also collected our quarterly dividends from Visa and Zoetis and became entitled to our quarterly dividends from Nike 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 160 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.9%.

Zoetis

Zoetis, our blue-chip animal healthcare holding, continues to strengthen its pride of place in pet care, having established a stellar dividend growth record of approximately 18 per cent per annum compounded. How? The business is built upon an enviable foundation that is difficult to replicate and stymies competition. For more than 70 years, first as Pfizer Animal Health and now as Zoetis, the company has nurtured relationships with global veterinarians, entrenching, with time and trust onside, its position as industry standard. A robust distribution system means Zoetis owns the lion's share of certain animal healthcare segments, such that competitors are deterred from entering said segments given Zoetis's supremacy. This edge, set against a backdrop of increased pet insurance uptake and longer pet life expectancy, resulting in greater pet spending, provides a promising outlook for Zoetis's future dominance as well as strong dividend growth ahead.