Venn Brown sat down with Jonathan Nurick, Chief Investment Officer of DivGro, to discuss the group’s portfolio strategy, long-term horizons, past performance, psychological aspects of investing, and more.
Origins and Strategy: DivGro was founded in 2019, growing from the Nurick family office. Its approach is rooted in academic research linking long-term dividend growth and share price appreciation. The strategy focuses on identifying companies capable of consistently growing dividends at high rates, providing superior, above-market returns, while continuously reporting continuous dividend growth with investors to maintain their resolve, thereby enhancing their returns.
Investment Criteria and Universe: DivGro’s investible universe is highly selective, favouring companies with long records of dividend growth, low payout ratios, minimal debt, and strong market positions. The portfolio excludes firms with market caps under US$5 billion, which limits exposure to Australian equities. Target sectors include medical devices, software, and industrial distribution—industries with stable growth and low cyclicality.
Performance and Resilience: Since inception, DivGro has delivered annualised net returns of 12.3%. The portfolio has historically shown lower drawdowns during market downturns and tends to recover faster due to the financial strength and demand resilience of its holdings. These characteristics underpin the strategy’s focus on capital preservation alongside growth.
Portfolio Construction and Turnover: DivGro maintains a concentrated portfolio of 25–40 positions, reflecting high conviction in its selections. Turnover averages 10–12% per year, with holding periods typically spanning a decade. Active management is supported by a robust model incorporating around 120 quantitative and qualitative factors, allowing for continuous refinement of positions.
Investor psychology: A key differentiator for DivGro is its emphasis on behavioural alignment. Regular dividend increases serve as emotional anchors for investors, reinforcing confidence during volatility. The strategy is designed not only to deliver superior financial outcomes but also to support disciplined, long-term investment behaviour.
