The DivGro Weekly—28.08.26

222 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we became entitled to our quarterly dividends from Microsoft, Mobility Global and S&P Global, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 222 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 13.9%.

S&P Global

Earlier this year, when S&P Global increased its dividend — extending its string of consecutive dividend increases beyond 50 years — it explained that the true magnitude of its dividend increase could only be known later in the year. This was because S&P Global was preparing to spin off its Mobility unit as an independent company and expected that Mobility too would continue its approach of annual dividend increases. Fast-forward and Mobility just declared its maiden dividend, magnifying the effective S&P Global increase from earlier this year. A leaner S&P Global should highlight key assets, such as its near-duopoly position in debt rating with sister DivGro holding Moody’s. Between them they control circa 80% of the market, and indeed their value proposition is so strong that even if their competitors chose to price at literally ‘zero’, it’s unlikely S&P Global (or Moody’s) would lose any business as their fees are negligible relative to the interest savings resulting from their stamp of approval. Plus, there are many institutional buyers whose mandate simply prevents them from buying any debt security which does not have an S&P Global or Moody’s rating, reinforcing the effective duopoly. With this privileged position, and with the Mobility spinoff now complete and carrying its own dividend, S&P Global seems especially well placed to extend its superb record of dividend growth far into the future.