The DivGro Weekly—27.06.25

194 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we became entitled to our quarterly dividend from Danaher, and when Mastercard and S&P Global declared their quarterly dividends, 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 14.42%.

Danaher

Since 1984, Danaher, a global leader in life sciences and diagnostics innovation, has grown its share price at a compounded annualised rate above 20%, establishing itself among the finest stock market compounders ever. It follows as no surprise that the company recently increased its dividend by a substantial 18%. So, how has it achieved these records? Founded by Steven and Mitch Rales, both early adopters of kaizen, the Japanese philosophy of incremental improvement, at the root of Danaher lies the Danaher Business System. It works as follows: since inception, Danaher has acquired hundreds of businesses, driven by long-run revenue growth with margin expansion. What makes this approach uniquely Danaher’s, however, is its outlook to become embedded into a process such that a high proportion of its sales become recurring. At present, 80% of Danaher’s sales are recurring, with a blended operating margin approaching 30%. Danaher’s primary businesses optimise the time and cost of its customers’ search by developing therapies; helping customers manufacture therapies more effectively; and helping healthcare professionals get the right therapy to the right patient at the right time. With its mission-critical sales totalling $24 billion in 2024, and against the backdrop of indispensable and growing segments, Danaher is excellently positioned for its continued business growth and the extension of its dividend trajectory.