The DivGro Weekly—26.11.21

83 Consecutive dividend increases

This week we received our dividends from Pool Corp and MarketAxess.

We also became entitled to our dividends from Moody's, SBA Communications, S&P Global and Wingstop.

Wingstop is adeptly exploiting people's love of chicken wings. Suitable as an appetizer, main or side, wings are shareable and well suited for delivery. Delicious but with cheap inputs, the Wingstop format offers customers relatively low prices and good value, while offering franchisees very high profitability. Wingstop stores earn returns on capital exceeding 50% meaning franchisees are queueing up to open new stores as fast as possible. Having raised its dividend at a compounded average rate of 25% per year since initiating quarterly dividends in 2017, Wingstop's record is impressive. Since Wingstop's margins expand as its footprint gets bigger, the recent opening of the 1600th store and with international expansion only just beginning, Wingstop's profitability and resulting dividend growth prospects are compelling.