The DivGro Weekly—10.03.23

129 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividend from Microsoft.

Having marked our calendars, we look forward to shortly receiving our dividends from Home Depot, Nike and Wingstop.

Since DivGro's inception we have predicted and benefited from 129 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.5%.

Wingstop, our fast-growing chicken wing franchisor will imminently cross the important 2,000-unit milestone. Wingstop units are cleverly designed around optimising franchisee economics, with the most important feature that units are fully operable with a team of only four. Indeed, because of the efficiency of this small team, coupled with the low upfront cost of setting up a store, Wingstop units are immensely profitable at the $1m annual sales mark and obviously become much more profitable as throughput increases. Since today new units are opening at sales above $1.2m, the average store is already at $1.6m, and some seasoned cohorts are pushing through the $3m sales mark, Wingstop's profitability is gravitating from superb to spectacular. This dynamic has underwritten Wingstop's emerging dividend growth profile, having raised its quarterly dividend above 22% per year annualized since initiating dividends in 2017 (with significant bonus special dividends on top).