The DivGro Weekly—09.05.25

192 Consecutive dividend increases

Weekly Dividend Progress

This week we received further real-time, tangible evidence of outstanding business progress when we received our dividends from Stryker, L'Oréal and Hermès and became entitled to our quarterly dividend from Costco, all meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 192 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.5%.

Costco

Costco, our colossus of warehouse clubs, recently marked its 20th consecutive annual dividend increase with a 12.1% uplift. Its persistently high growth rate edges Costco closer to eclipsing Walmart’s market value — an incredible feat considering Walmart’s multi-decade head start, itself among the greatest success stories. This comes on the heels of Costco’s house brand, Kirkland, recently surpassing the total global sales of another powerhouse, P&G. So, what makes its playbook so powerful? While most retail chains use their in-house brands to lift margins via lower prices and often lower quality, Costco’s approach is different. Uniquely, Costco demands its Kirkland suppliers provide merchandise that is at least 1% better than that of their own branded goods and meaningfully cheaper. This formula (more premium, less pricey) speaks for itself, converting customers into loyal devotees. Beyond this compelling proposition, some Kirkland products have gained viral appeal, with Kirkland surfboards and golf balls becoming smash hits. In each case, some of the world’s leading professionals have respectively singled out Kirkland’s surfboards and golf balls as best-in-class. Thanks to its unique superior-yet-cheaper model, Kirkland has become Costco’s crown jewel, supporting its growth profile and bolstering the continuation of its impressive dividend trajectory.