The DivGro Weekly—02.10.26

224 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 dividends from Roper Technologies and Stryker, both meaningfully higher than this time last year.

How We Are Tracking

Since DivGro's inception we have predicted and benefited from 224 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 13.9%.

Roper Technologies

With roots extending beyond 130 years, Roper Technologies has been widely studied due to the acclaimed success of its “Roper Way” approach. Over the past 33 years, Roper has grown its dividend consistently around 15% per annum compounded, multiplying its dividend more than 200x, and helping drive a superb share-price escalation in tandem. Roper is unique in its understanding that it is not necessarily the size of a market opportunity, or that market growth rate, that governs ultimate return potential. Rather, the key to success may lie in the competitive landscape, particularly in opportunities with ‘low competitive intensity’. Provided it is less competitive and can be substantially dominated, a market of $1 billion in sales may be much more attractive than a $10 billion market. Indeed, Roper provides relatively low-cost, mission-critical software in 29 business niches, occupying the dominant market position in each one. Prospective competitors are dissuaded from competing because of the limited size of the niche and/or because they recognise Roper is difficult to dislodge as dominant incumbent. This allows Roper relative freedom to gradually extend its share, uplift margins and profitability, and opportunistically buy into new niches and replicate its approach. With a long runway of potential such niches, Roper is ideally positioned to continue applying the “Roper Way” and build upon its impressive dividend growth record.