227 Consecutive dividend increases
Weekly Dividend Progress
This week we received further real-time, tangible evidence of outstanding business progress when Visa increased its dividend by 16.4%. We also collected our quarterly dividend from Roper Technologies and became entitled to our quarterly dividend from Lowe’s, both meaningfully higher than this time last year.
How We Are Tracking
Since DivGro's inception we have predicted and benefited from 227 consecutive dividend increases across our portfolio companies, with no decreases. The average rate of these dividend increases is 14.1%.
Distribution
Last week, we paid our 28th consecutive quarterly distribution. Notably, this distribution is 12.9% higher than the same time last year. DivGro has grown its distributions each year by at least a double-digit percentage increase. Our quarterly distribution is already 3x higher than our first quarterly distribution paid in January 2020.
Visa
Visa, our payment processing behemoth, just announced a 16% dividend increase. This means that since its IPO in 2008, Visa has grown its dividend at an overall compounded rate of around 20% per annum, powering its share price alongside. Put differently, this cadence means each dollar of Visa’s dividend in 2008 is now around $26 — and continues to grow strongly each year. Visa is blessed with many assets, including its state-of-the-art technological infrastructure, which enables virtually instantaneous linkage of cardholders, merchants and banks, and nearly 70 years of proprietary data, which arms Visa with an intrinsic ability to distinguish between valid and fraudulent transaction attempts in real time. While Visa provides extremely high value against a nominal cost, its ubiquity boils down to its earned trust amongst consumers, merchants, banks, and regulators. As payments continue to migrate to digital — with Visa both a key enabler and beneficiary — it appears primed to extend its outstanding dividend growth credentials in the future.