The DivGro Weekly—05.11.21
81 Consecutive dividend increases
This week we received our quarterly dividend from Lowe's, and became entitled to our quarterly dividends from Costco, MarketAxess, Texas Instruments and Zoetis.
Formerly known as Pfizer Animal Health, Zoetis has nurtured its direct relationship with the global veterinarian community for over 65 years and is the clear leader in animal medicines. Because vets prescribe and administer most medications, pet owners invariably accept the vet's recommended treatment, particularly when the product is the industry standard as is generally the case with the Zoetis portfolio. Vets are able to pass on the cost of Zoetis' products easily, typically adding a markup themselves. This markup is immaterial to the pet owner because the bulk of the bill is for the vet's time, but allows the vet to earn product as well as time-based income. When Zoetis later develops innovative new products sold for ever higher prices, these are seamlessly promoted by vets, boosting the vet's profits, improving pet health outcomes, and enhancing Zoetis' fortunes. This dynamic has powered Zoetis' rapid dividend growth, rising every year since its 2013 IPO at a superb compounded average rate of 17% per year.