Bristol Gate Capital Partners Sold Zoetis (ZTS) Due to Deteriorating Dividend Growth

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Soumya Eswaran

Mon, March 30, 2026 astatine 8:40 AM CDT 4 min read

Bristol Gate Capital Partners, an concern absorption company, published its Q4 2025 capitalist missive for the “US Equity Strategy”. A transcript of the missive tin beryllium downloaded here. Bristol Gate prioritizes companies with beardown escaped currency flows, disciplined superior allocation, and precocious dividend maturation for superior risk-adjusted returns. These resilient businesses align absorption interests with shareholders done sustainable dividends. Since precocious 2022, the marketplace has shifted towards AI leaders, resulting successful the fund's underperformance owed to constrictive breadth. While the steadfast invests successful information subject and AI, the absorption remains connected precocious dividend maturation companies. Recently, this constrictive absorption was shifting, supported by the outperformance of the S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight. This marketplace breadth expansion, on with the firm’s Data Science team's advancements successful the Distant Future Model, offers a beardown accidental for investors to bargain the strategy and mitigate risks successful the existent concentrated market. Please reappraisal the Strategy’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Bristol Gate Capital Partners US Equity Strategy highlighted Zoetis Inc. (NYSE:ZTS). Zoetis Inc. (NYSE:ZTS) is an carnal wellness institution focused connected carnal wellness medications, vaccines, and diagnostic products. On March 27, 2026, Zoetis Inc. (NYSE:ZTS) banal closed astatine $113.35 per share. Zoetis Inc. (NYSE:ZTS) delivered a -12.10% instrumentality successful the past month, and its shares mislaid 31.16% implicit the past 12 months. Zoetis Inc. (NYSE:ZTS) has a marketplace capitalization of astir $49.953 billion.

Bristol Gate Capital Partners US Equity Strategy stated the pursuing regarding Zoetis Inc. (NYSE:ZTS) successful its 4th fourth 2025 capitalist letter:

"Materials and Consumer Discretionary were the lone antagonistic implicit sectors successful Q4. Zoetis Inc. (NYSE:ZTS), Carrier Global and Cintas were the main detractors from a banal perspective. Zoetis (ZTS) released net earlier successful November and portion net per stock was up of consensus, income trailed modestly. The institution besides lowered its yearly guidance, starring to a important banal diminution aft the release. Throughout the year, ZTS struggled with less US veterinarian visits, caller contention successful cardinal markets and ongoing antagonistic societal media sum related to the company’s osteoarthritis symptom drugs. In December, the committee of directors declared a dividend summation of 6% from the quarterly complaint paid successful 2025. We exited the presumption anterior to twelvemonth extremity due to the fact that of deteriorating dividend growth. We held ZTS for implicit 6 years and until 2025, the institution had an annualized dividend maturation complaint of 22% during our holding period.

Zoetis was sold due to the fact that of deteriorating dividend growth. We held Zoetis for implicit 6 years and, until 2025, the institution had an annualized dividend maturation complaint of 22% during our holding period. However, our exemplary had precocious predicted a slowdown successful dividend maturation and the institution subsequently announced a dividend summation of lone 6% for the coming year. Setbacks surrounding its cardinal osteoarthritis drug, Librela, and intensified contention successful its dermatology and parasiticide markets implicit the past twelvemonth seemingly made maintaining its humanities dividend maturation complaint much challenging."

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