Welcome!
We've spun the wheel for Europe (~650 companies), bypassing the usual suspects like LVMH and Nestlé. The ticker has landed on a company that perfectly embodies the 90% story: vital to the world, yet rarely discussed at a dinner party.
Before we dive in, a reminder of what the index itself has delivered over time.
Period FTSE All-World | Annualized Return | Multiplier |
|---|---|---|
Last 10 Years Last 20 Years Last 25 Years | ~12.8% ~9.1% ~8.4% | ~3.3x ~5.7x ~7.2x |
Every week, we pull one company at random from the FTSE All-World with ~4,200 companies representing 90% of global stock market wealth. We share the index's long-term returns as a reminder of why we're here: the long game. New to the newsletter? Start here.
DCC Plc
Listed on the London Stock Exchange since 1994, headquartered in Dublin, Ireland.
We might overlook "boring" distributors because they don't have the glamour of a brand name. But here is some emotional alpha for you: DCC has increased its dividend every single year for 31 consecutive years. Making it a true dividend aristocrat, currently yielding ~4.5%.
In a continent often criticized for stagnant growth, DCC has quietly expanded from a small Irish investment vehicle into a stalwart with operations across several countries. They are the masters of the "Bolt-on Acquisition". Buying small, family-owned distributors across Europe and plugging them into their massive, efficient machine.
A few key facts:
~£4 billion market cap
£18.0 billion revenue in FY2025
31 consecutive years of dividend growth
Annualized return (CAGR) of ~13% since going public in 1994
The operations: then and now
Until 2025, DCC operated through three main pillars:
DCC Energy: One of the largest distributors of liquid fuels and LPG in Europe. If you see a truck delivering heating oil to a remote village in Scotland or a gas station in France, there's a high chance DCC is the backbone behind it.
DCC Healthcare: Manufactured and distributed healthcare products — everything from vitamins to surgical equipment — for third-party brands and their own labels.
DCC Technology: A massive "middleman" for tech. When a retailer needs 5,000 laptops or a specific specialized server, they call DCC.
In late 2024, DCC announced a bold new strategy: divest Healthcare and Technology to focus exclusively on Energy.
Healthcare Exit (Completed): Announced in April 2025 and sold to Investindustrial at an enterprise value of £1.05 billion, with the deal closing in September 2025. Their "good" business was sold to fund their "great" one.
Technology Divestment (In Progress): The UK & Ireland Info Tech business was sold to Aurelius for ~£100m and completed in November 2025. The remaining business — now rebranded as Nexora — covers Pro Tech and Life Tech operations across North America and Europe, and DCC is targeting its sale by end of 2026.
The result: a leaner, more focused business.
The strategy: cleaner energy
DCC isn't just selling fuel — they are selling the Energy Transition as a Service. Their pivot focuses on two pillars:
DCC Solutions (The Growth Engine): Helping industrial and commercial customers decarbonize through a blitz of 10+ acquisitions in solar, heat pumps, and carbon management.
The "Drop-in" Play: Pivoting from fossil fuels to biofuels (HVO) and Bio-LPG, allowing their 10 million customers to go "green" without replacing their entire infrastructure.
The company is now focused on three areas: Energy Products, Energy Services, and Mobility (service stations and fleet services). Energy Services profit grew strongly last year, indicating the strategy is paying off.
The transition
Investors often view DCC as "The Heating Oil Guys." Their 2025 annual report proves they are becoming "The Energy Transition Guys."
They are shifting from selling oil and gas to services like solar installation, heat pumps, and carbon management. DCC is shedding its "conglomerate discount" by selling Healthcare and Tech. We are watching a 30-year-old diversified distributor transform into a lean, high-margin Energy Transition leader. All while paying us a ~4.5% yield to wait.
The future
From industry conglomerate to pure-play energy business. The transformation is well underway.
Conglomerates are usually valued at a discount to the sum of their parts. DCC is no different. The current transition is a massive pivot, with a full focus on becoming a key player in the energy transition. It will be interesting to see if management can execute on their promises. And if the company can increase dividends for another 31 years.
Data and images sourced from DCC Plc Investor Relations.
Happy to receive feedback on this second edition, and next week we'll be looking at a company from Asia Pacific.