The DivGro Weekly—18.07.25
194 Consecutive dividend increases
Weekly Dividend Progress
This week we received further real-time, tangible evidence of outstanding business progress when we collected our dividends from Heico and Intuit and became entitled to our quarterly dividends from Abbott and Watsco, all meaningfully higher than this time last year.
How We Are Tracking
Since DivGro's inception we have predicted and benefited from 194 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.4%.
Distribution
This week, we paid our 23rd consecutive quarterly distribution. Notably, this distribution is 11.5% higher than the same time last year. DivGro has grown its distributions each year by at least a double-digit percentage increase. Our quarterly distribution is already 2.7x higher than our first quarterly distribution paid in January 2020.
Watsco
This week, shareholders became entitled to Watsco’s 200th consecutive quarterly dividend payment. The champion North American HVAC distributor has increased its dividend more than 100x in the last quarter century. So, what’s driven its kinetic performance? As Watsco has progressively secured dominance over its niche, competitors are unable to match its cost or service. In cold or hot and humid climates, like its Florida HQ, an evergreen need for air-conditioning and heating makes Watsco effectively indispensable. Urgent replacements and system installations magnify Watsco’s edge in location density and timely inventory availability, bolstered by its sophisticated technician-facing information tools designed to solve customer needs more efficiently and cheaply. As Watsco increases its market share, and continues to implement internal efficiencies to increase margins, it stands to benefit from a tailwind of more than 110M systems already in place which no longer meet efficiency and emission standards. Over time, as these require replacement, they offer a promising extension of Watsco’s outstanding dividend trajectory.