The DivGro Weekly—09.01.26

205 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 ADP and FirstService and became entitled to our quarterly dividends from American Express, Heico and Roper Technologies, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 205 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.2%.

Heico

The Mendelson family took control of Heico in 1990, ushering in a dividend growth pathway that powered a stock price multiplication in excess of 1000x. Heico produces highly engineered, government-approved aftermarket and replacement parts for the aviation and aerospace industries. Its key business advantage is that it is able to supply its repertoire of more than 20,000 highly engineered parts at prices 30-50% below its competitor OEM counterparts, who require high and increasing prices to recover their heavier upfront R&D outlays. This results in an ever-widening price gap in Heico’s favour, cementing customer loyalty to Heico given these parts need ongoing replenishment. Previously, we wrote that Berkshire Hathaway was accumulating Heico stock and indeed similarities exist between Berkshire’s Geico subsidiary — a lowest-price provider of car insurance, resulting in decades of steadily increasing market share — and Heico’s 2% but steadily increasing market share in its largest segment. Viewed this way, Heico enjoys a potentially endless capacity both to grow segment share and to extend its product line, supporting a long, strong dividend growth extension.