The DivGro Weekly—21.10.22

108 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Intuit and Roper, and became entitled to our quarterly dividend from Lowe's.

This week DivGro paid its 12th consecutive quarterly distribution. This distribution is 11.5% higher than the same quarter last year.

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%.

Intuit, beginning in 1983 as a basic personal finance tool, has evolved into the dominant leader in accounting and tax software for American households and small businesses. Due to its overwhelming ubiquity, accountants are much more accustomed to working with clients who utilize Intuit's software, and in turn can drive greater efficiency through their own accounting practices by directing clients towards adopting Intuit's solutions. These recommendations fortify Intuit's market dominance and effectively create a high barrier for competitors, since they would need to spend prohibitively on advertising and accountant incentives in order to overcome this almost-automatic entrenched preference. By periodically adding modules to broaden its coverage of small business needs, Intuit expands its favoured status and becomes increasingly entrenched within small businesses and accounting practices alike. This dynamic has underwritten Intuit's emerging dividend growth record, rising at a compounded annualized rate of 16% since inception of its dividend in 2011.