The DivGro Weekly—07.03.25

189 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when American Express increased its dividend by 17.14%. We also received our quarterly dividends from MSCI, Visa and Zoetis, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 189 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.61%.

Amex

‘Put it on my Amex’. Nowadays, it’s hard to imagine a world without American Express. Founded in 1850, Amex began as a freight forwarding company, gaining dominance in New York in the movement of express shipments. In 1891, Amex invented Travelers Cheques which, like passports, became near-impossible to travel without over the ensuing century. While the company followed Diners into paper charge cards, Amex introduced the world’s first plastic charge card in 1959. Today, Amex is the fourth largest card issuer worldwide, with 2024 sales exceeding $65 billion. While it has fewer cardholders and is less universally accepted than some peers, particularly outside of the United States, its privilege rests in its upscale image and the high spending power of its clientele. Aspirant cardholders must undergo thorough vetting and pay ever-rising annual fees to be card-carrying members. Accordingly, cardholders benefit from uniquely high spend limits, status and superior service — such as travel and dining concierge services — while Amex enjoys low credit write-offs and predictable, recurring and high-margin fee revenue. Plus, the brand’s prestige is further reinforced by one of its shareholders. Warren Buffett treasures his Amex stake (which we covered in our latest investor letter), especially in the wake of its strong dividend uplift in recent years, including a 17 per cent rise this week. As the company celebrates its 175th anniversary this month, and as spend increases given the upward mobility of Amex’s cardholders and expanding base of issued cards, Amex’s dividend growth trajectory appears set to continue apace.