The DivGro Weekly—30.01.26

207 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when MSCI increased its dividend by 13.9%. We also became entitled to our quarterly dividend from Costco, meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 207 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.2%.

DivGro in the Press

We recently featured on InvestorDaily, where we discussed why dividend growth investing is one of the most effective yet underexploited investment methodologies.

MSCI

MSCI, the preeminent compiler of global indices, is a superlative case study of the potential outperformance of spinoffs. Since it was spun out of Morgan Stanley in 2007, MSCI has outperformed its erstwhile parent by 10x and since paying its maiden dividend in 2014 it has grown this dividend more than 11x — including a 13.9% increase this week. How has it done so? MSCI benefits from large asset managers cloning or comparing against its indices. Effectively, this means the heavy lifting of asset gathering is done by external entities while MSCI collects ongoing, high-margin, royalty-type fees. This elicits a virtuous cycle wherein the growth of those asset managers fuels MSCI’s growth in parallel, providing increasing resources to reinvest in high-growth analytics adjacencies in burgeoning areas including sustainability, climate, and geospatial asset intelligence. With an expanding royalty business and long runway replete with these innovative adjacencies, MSCI is poised to extend its formidable dividend growth profile.