The DivGro Weekly—23.09.22

107 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Microsoft raised its quarterly dividend by 9.7%.

We also collected our quarterly dividends from Home Depot and SBA Communications.

Since DivGro's inception we have predicted and benefited from 107 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.5%.

SBA, our faster growing wireless telecommunication tower landlord, is particularly privileged since its towers facilitate mobile connectivity - a critical and always needed service - while each individual tower is effectively a localized monopoly protected by the undesirability of adding a second tower in any particular local area. As data needs grow, the value of each tower grows concurrently, because more transmission equipment is added to existing towers for which SBA charges incremental rent while incurring virtually no incremental costs. These attractive supply/demand dynamics enable SBA to command leases of up to 15 years with generous annual escalators. In turn, these predictable, rising cash flows have already underwritten sequential dividend increases for us of 26%, 25% and 22% since SBA became a core DivGro holding.