The DivGro Weekly—18.11.22

112 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Nike increased its dividend by 11.5%, its 21st consecutive annual dividend increase.

We also collected our quarterly dividends from Abbott, Texas Instruments and Costco.

Since DivGro's inception we have predicted and benefited from 112 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.4%.

Costco recently opened its first warehouse in New Zealand to customary fanfare (while spending nothing on advertising). Reporting on this event, The Otago Daily Times provided us with an unintended but important insight into Costco's remarkable economic ecosystem, quoting one of Costco NZ's first customers who paid $87.17 for 34 litres of fuel saying "I can't remember the last time I got fuel for under $100. The whole neighbourhood is excited." Since Costco charges only $60 for an annual membership in NZ, a customer who refuels twice each month would save more than $300 per year on fuel alone (before even beginning to save inside the Costco warehouse), with a return on this membership investment of at least 5x. Being satisfied with only profiting from the membership fee, Costco differentiates itself from competitors as a true customer advocate. Multiplying this modest membership fee over its 119 million and growing membership base, Costco creates an increasingly unrivalled ecosystem which has powered its dividend higher every year since 2004 at a rate above 13% per year (plus periodic generous special dividends as well).