The DivGro Weekly—06.03.26

215 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when American Express increased its dividend by 15.9%. We also collected our quarterly dividends from MSCI, Visa and Zoetis, and became entitled to our quarterly dividends from Interactive Brokers and Moody’s, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 215 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14%.

Visa

Visa, established in 1958 by a consortium of banks, now executes more than 300 billion transactions per year — a number which has grown substantially from 200 billion only a few years ago. Traditionally, Visa reports the total number of cards in issue; total dollar volume passing through its systems; and total number of transactions, all of which continue to power forwards at an impressive cadence. Notably, while the number of transactions has grown quickly over the last decade, the average transaction value has gradually been shrinking as Visa captures a growing proportion of payments and use cases. Given Visa charges a minimum fee for many of its use cases, this behavioural shift towards smaller transactions such as subscriptions and public transit system payments is driving increasing profitability and ubiquity. Having already increased its dividend at a compounded rate of around 20% since its 2008 IPO, this trend bodes well for the continuation of Visa’s dividend growth potential in the future.