The DivGro Weekly—13.09.24
167 Consecutive dividend increases
Weekly Dividend Progress
This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Zoetis, Moody’s and Wingstop. We also became entitled to our quarterly dividends from Alphabet and Pepsico, all meaningfully higher than this time last year.
How We Are Tracking
Since DivGro's inception we have predicted and benefited from 167 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.83%.
Pepsico
In the non-alcoholic beverage marketplace, Pepsico is often perceived as the understudy of Coca-Cola. Since it was birthed — and for more than 125 years since — it has been a formidable challenger in decades of the Cola Wars but has never been able to displace Coke. However, this has hardly prevented Pepsico from creating a superb dividend growth record. Quite the opposite: Pepsico has nurtured a 52-year record of consistent dividend increases which have, in turn, powered an equally impressive stock price performance. What is the company’s recipe for success? First and foremost: its ability to pivot. Rather than chasing Coke’s crown, Pepsico instead refocused on solidifying its position above and beyond smaller, aspirant drinks competitors. To further differentiate itself, the company channelled resources towards it burgeoning snack foods business, acquired when it merged with Frito-Lay in 1965. While its ownership may be lesser known, Pepsico’s famous snack foods brands (including Dorito’s, Lay’s and Ruffles) are staples in everyone’s pantries. By conceding dominance in drinks, Pepsico has entrenched itself within the uppermost echelons in North American snack foods and beyond, becoming a global household name in more than 200 countries. Each day, its products are bought more than a billion times — proof enough that Pepsico is not an understudy but a lead, with the distribution, wherewithal and flexibility to grow or extend its product lines and accordingly buttress an extension of its outstanding dividend trajectory.