The DivGro Weekly—28.10.22

110 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when we captured two more dividend increases, with Visa raising its dividend by 20% and Watsco by 11%.

Since DivGro's inception we have predicted and benefited from 110 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.5%.

Given its ubiquity, Visa benefits every single moment whenever a card (or digital equivalent) bearing its name is used to swipe, chip or tap to transact. Enjoying its privileged position at the apex of the payment industry and the superior margins that accrue from this, Visa benefits even more when these cards are used outside of the cardholder's home country, extracting additional fees for facilitating cross-border transactions. This means that as global travel resumes, Visa benefits from the incremental transaction activity as well as the higher fees that these carry. This week's 20% dividend increase showcases how Visa continues to win from the ongoing transition from cash to digital forms of payment, boosted by travel normalisation. Having already raised its dividend every year since its 2008 IPO, these factors provide Visa with a long and strong runway for continued outstanding dividend growth prospects.