The DivGro Weekly—10.09.21

76 Consecutive dividend increases

This week we received our quarterly dividends from Wingstop, S&P Global and Microsoft.

While dividends paid by tech companies are often overlooked, the predictive value of rapid dividend growth should never be underestimated. Microsoft has raised its dividend 7-fold since initiating quarterly dividends in 2004, underwriting its excellent share price performance. By concentrating primarily on the trajectory of Microsoft's dividend (rather than price movement alone), the likelihood of actually benefiting from its outstanding price appreciation improved tremendously. We believe Microsoft's commitment to a rising dividend and the discipline of investing behind doing so has materially extended Microsoft's life as a high-growth, high-margin business.