The DivGro Weekly—07.10.22

108 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividend from Nike.

Having marked our calendars, we look forward to receiving our quarterly dividends from Intuit, Mastercard and Roper shortly.

Since DivGro's inception we have predicted and benefited from 108 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.5%.

For more than a century, Roper has developed mastery building and buying leading niche industrial businesses, and more recently, leading niche software businesses. Roper targets relatively narrow but critical niches, on the basis that dominating these is highly profitable for the incumbent but not large enough to attract aspiring new entrants. This strategy lends itself to high margin businesses that are almost never household names. One example is Cornell, a leader in highly engineered pumps, including those for high volume water transfer. These are relied upon for mission-critical applications such as flood de-watering. With seemingly endless niche opportunities, Roper is ideally positioned to redeploy its playbook long into the future. This successful methodology has already translated into a superb dividend growth record, with Roper having raised its dividend every year since 1993 at a compounded average rate of 18% per year.