The DivGro Weekly—26.06.26

220 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividend from Home Depot and became entitled to our quarterly dividend from Danaher, both meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 220 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 13.9%.

Danaher

Over the course of 42 years since the Rales Brothers founded Danaher, it has built and bought a suite of businesses, applying the now-famed ‘Danaher Business System’ to each with aplomb. The net result? Danaher has achieved a share price increase of around 20% per annum compounded, a remarkable record. Today, it is a leader in diagnostics equipment and bioprocessing, servicing the discovery, development and manufacturing of new drugs. Per its proven formula, Danaher entrenches itself into the process, selling mission-critical machines upfront which then require ongoing consumables for the entire product life cycle, which may extend more than 30 years. This approach has generated annual sales north of $24 billion — notably, more than 80% being recurrent in nature or ‘built in’. As for AI? Danaher believes it could significantly enhance its customers’ drug discoveries and yields, consequently escalating demand and ultimately throughput for its systems and especially consumables. This would provide an extra tailwind for Danaher’s already expanding sales, margins and profits profile, further boosting the promising development of its impressive dividend growth record.