The DivGro Weekly—20.02.26

212 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when L’Oréal, Moody’s, Watsco and Hermès increased their dividends by 2.9%, 9.6%, 10% and 12.5% respectively. We also collected our quarterly dividends from Abbott Labs and Costco, both meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 212 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14%.

Hermès

Securing an Hermès Birkin or Kelly bag is a marathon, not a sprint. First: cultivate a relationship with an ‘SA’ (sales assistant); then secure a near-impossible leather appointment. Finally, should one make it upstairs where the sacs du jour are kept, fate lies in the hands of the SA to conjure an item on one’s wish list — because whatever awaits in that box, there is only one on offer. This rarefied sourcing process has solidified Hermès as the uppermost maison in luxury fashion, contributing most recently to the announcement of a solid 12.5% increase in its annual dividend, expected to be ratified at its upcoming AGM. A single bag takes 16 hours to manufacture, with craftsmen undergoing eight years of intensive training before passing muster. The net result of this level of attention and care? Customers clamour for Hermès merchandise, while it never has to discount prices to clear inventory. Au contraire: customers without purchase records wrestle to buy wares, instead being told they are unavailable. With its rock-solid balance sheet and loyal clientele, Hermès is afforded the luxury of taking the long view. For example? The imminent opening of its UK flagship store on London’s gilded Bond Street comes 18 years after Hermès acquired the building, but now, it says, timing is propitious — foreshadowing a likely extension of its impressive dividend growth credentials.