The DivGro Weekly—15.12.23

146 Consecutive dividend increases

This week we received further real-time, tangible evidence of outstanding business progress when Zoetis increased its dividend by 15.2%. We also received our quarterly dividends from Wingstop and S&P Global, and became entitled to our quarterly dividend from ADP, all much higher than this time last year.

Since DivGro's inception we have predicted and benefited from 146 consecutive dividend increases across our portfolio companies. The average rate of these dividend increases is 15.1%.

Wingstop, our ascendant fast-food holding, has raised its quarterly dividend above 21 per cent per year annualised since the company initiated quarterly dividends in 2017. (Lest we forget its bonus special dividends too!). A growing armada of over 2000 stores and counting buttresses Wingstop's attractive economics that continue to turbocharge its growth trajectory. Among these: Wingstop's takeaway and delivery focused model demands a comparably smaller rental footprint; a simple menu requires a tighter workforce; and, unlike others who have been forced to raise their prices, Wingstop's capacity to fix prices enhances value and reflects favorably in consumer's eyes and pockets, boosting loyalty. This symbiosis has seen a rapid increase in visits and transactions across Wingstops. Its singular playbook - plus the possibility to take price should Wingstop choose to do so - further entrenches the company, which is primed to continue growing its dividends upstream. See our ausbiz interview, where we highlight Wingstop, here.

This week we were interviewed on ausbiz to discuss Watsco, our leading HVAC distributor. We covered how it has sustained its stellar dividend growth record and why it is so well positioned for an increasingly climate conscious world. Click here to access the interview.