The DivGro Weekly—18.10.24

169 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we received our quarterly dividend from Intuit. We also became entitled to our quarterly dividends from Abbott and Watsco, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 169 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.75%.

Watsco

Since transitioning from manufacturing to a distribution model in 1989, Watsco has become a wellspring of spectacular dividend generation, compounding its dividend more than 100x since 2000 and supporting a similarly spectacular stock price appreciation. So, what have been the principal undercurrents of its success? For one, Watsco is the dominant leader in North America in the distribution of new and aftermarket heating and cooling systems and components. It is the apex predator within its space; its market share is greater than most of its relevant competitors combined. This positioning manifests in several key advantages it makes available to its customers: Watsco holds the widest product range; which is available more quickly and more cheaply; it has more convenient locations; it offers better and more knowledgeable service and develops industry-leading digital tools which customers use to grow their own businesses. The net result? It is the go-to home for current and prospective businesses installing and servicing heating and cooling systems. With an enviable suite of advantages such as these making it virtually impossible for others to challenge its increasing dominance, Watsco steadily expands its footprint and enhances its profitability profile, in turn reinforcing its leadership and dividend horizon.