The DivGro Weekly—20.03.26

215 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we collected our quarterly dividends from Cintas and Alphabet and became entitled to our quarterly dividend from ADP, 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%.

DivGro in the Press

This week, we featured on Finance Friends. The podcast episode is available on Apple and Spotify.

Cintas

For over 90 years, Cintas has kept pace with the times: evolving from reseller of discarded rags; to laundry operations; through to leadership in uniform rental, sanitation, fire safety and first-aid services. On the surface, these core foci may appear mundane. However, the businesses Cintas services rely upon it to open their doors compliantly, hygienically, and on brand. Given Cintas’s ability to deliver best-in-class service at unrivalled price points, the company has established a near-peerless record. Since its 1983 IPO, Cintas has raised its dividend at approximately 18% per annum compounded, driving a parallel uplift in its stock price. Last week, Cintas added another acquisition to its stable with UniFirst, a family-run competitor, which will add 300,000 businesses to Cintas’s current repertoire of more than one million business customers. Per Cintas, this acquisition proffers opportunities to increase efficiencies within UniFirst while simultaneously cross-selling Cintas’s wider offering into this customer base. Plus, given Cintas is the scaled and dominant leader in a fragmented market — with 15 million more businesses potentially available to capture — an enormous runway lies ahead, precipitating a long extension of its formidable dividend growth record.