The DivGro Weekly—25.10.24

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 Roper Technologies and became entitled to our quarterly dividend from Lowe’s, both 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%.

Distribution

This week, we paid our 20th consecutive quarterly distribution. Notably, this distribution is 11.2% higher than the same time last year. DivGro has grown its distributions each year by at least a double digit percentage increase. Our quarterly distribution is already 2.3x higher than our first quarterly distribution paid in January 2020.

Lowe’s

What does a dividend growth king look like? Look no further than Lowe’s. Since its 1961dividend debut, the company has increased its dividend every year at a compounded rate above 15 per cent per annum. This has propelled a tandem growth in stock price, generating a cumulative increase of more than 7000x. Powered by immense scale advantages, Lowe’s, together with longstanding DivGro holding, Home Depot, dominates a combined US market share exceeding 30 per cent of the home improvement category. Forever optimising, Lowe’s is in the midst of a multi-year mission to improve operational efficiency and drive margins towards those of Home Depot, i.e., much higher. Meanwhile, as the home improvement category grows over time, and as the company’s market share grows faster still, Lowe’s earns a growing royalty on the ongoing maintenance of homes in North America. In its second century — but still in the ‘early innings’ of unlocking further efficiencies — Lowe’s is ideally positioned to extend its dividend growth journey long into the future.