The DivGro Weekly—17.11.23

143 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Roper raised its dividend by 9.9% and Nike raised its dividend by 8.8%.

We also collected our quarterly dividends from Abbott and Texas Instruments and became entitled to our quarterly dividends from SBA Communications, Microsoft and Cintas, all higher than this time last year.

Since DivGro's inception we have predicted and benefited from 143 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.1%.

Cintas has generated a phenomenal dividend record. For 40 consecutive years, dividend increases above 18 per cent per annum compounded have propelled an equally impressive stock performance. Today, the blue-chip force in uniform rental, sanitation and safety solutions services more than one million businesses in North America. Its relatively low-cost yet mission-critical services consolidate Cintas’s rock-solid position: the company maintains a magnetic hold on customers who naturally gravitate to the provider that excels on cost and reputation. Given competitors are typically smaller and localised, Cintas beats its competition on both fronts. This enables the company to further entrench its market share and allows it the freedom to introduce higher-margin, faster-growth ancillary services such as fire safety and first aid. Open-ended share gains, supplemented by higher-margin opportunities, bode especially well for Cintas to maintain its upper hand and orient its rapid dividend growth upwards.

We were featured again on ausbiz, this time discussing our investment in FirstService - its dominant and valuable positioning within the real estate ecosystem (without having to actually own the real estate itself) - and how this allows it to grow so consistently. Click here to access the interview.