The DivGro Weekly—20.10.23

139 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividend from Intuit and became entitled to our quarterly dividends from Abbott and Watsco. These dividends are all materially higher than this time last year, increasing by 15.4%, 8.5% and 11.4% respectively. This week DivGro paid investors our 16th consecutive quarterly distribution, 12.1% higher than this time last year.

Since DivGro's inception we have predicted and benefited from 139 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.2%.

Since initiating quarterly dividends in 2011, Intuit, our accounting software leader, has grown its dividend at an aggressive pace of 16% per annum compounded. Simultaneously, over the last 10 years, Intuit’s customer base has ballooned from 30 million to more than 100 million American households and small businesses, all tightly held under its grip. How? Intuit’s incumbency enables the company to add modules seamlessly, generating more profits and strengthening its competitive advantage. The way it works: more modules generate powerful concurrent effects; they create more costly obstacles for households and small businesses to migrate from Intuit to a competitor, plus they imperil aspiring competitors from the outset, burdening them with a need to overinvest in order to match the breadth of Intuit’s offerings.

We were featured again on ausbiz, this time to share some insights about Costco - one of our most favored holdings - and why it consistently outperforms the much bigger Walmart. Click here to access the interview.