Dividend Aristocrats In Focus: Dover Corporation – Sure Dividend

Up to date on February thirteenth, 2026 by Nathan Parsh

The Dividend Aristocrats encompass firms which have raised their dividends for no less than 25 years in a row. Over the many years, many of those firms have develop into big multinational firms, however not all of them.

You’ll be able to see the total checklist of all 69 Dividend Aristocrats right here.

We created a full checklist of all Dividend Aristocrats, together with vital monetary metrics like price-to-earnings ratios and dividend yields. You’ll be able to obtain your copy of the Dividend Aristocrats checklist by clicking on the hyperlink beneath:

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Dover Company (DOV) has raised its dividend for 70 consecutive years, one of many longest dividend development streaks within the inventory market.

The corporate has achieved such an distinctive dividend development document due to its sturdy enterprise mannequin, resilience to recessions, and regular long-term development.

There may be room for continued dividend raises every year going ahead, however then again the inventory seems to be overvalued proper now.

Enterprise Overview

Dover is a diversified world industrial producer that gives its clients tools and parts, consumable provides, aftermarket components, software program, and digital options.

It has annual revenues of greater than $8 billion  and operates in 5 segments: Engineered Merchandise, Clear Vitality & Fueling, Imaging & Identification, Pumps & Course of Options, and Local weather & Sustainability Applied sciences.

On January twenty ninth, 2026, Dover reported fourth-quarter and full-year outcomes. Income grew 8.8% for the quarter to $2.1 billion, which was $10 million above estimates. Adjusted earnings-per-share of $2.51 in contrast favorably to $2.20 within the prior 12 months and was $0.02 higher than anticipated. For the 12 months, income elevated 4% to $8.1 billion whereas adjusted earnings-per-share of $9.61 in comparison with $8.29 in 2024.

For the quarter, natural income was greater by 5% year-over-year whereas bookings grew by 10%.

Natural development declined 6% for Engineered Merchandise as power in aerospace and protection had been as soon as once more offset by weaker volumes in car providers.

Clear Vitality & Fueling elevated 4% as a result of continued sturdy demand for clear vitality parts and retail fueling in North America.

Picture & Identification was up 1% as a result of demand for core marking and coding tools and serialization software program.

Income for Pumps and Course of Options grew 11% as a result of greater demand for  single-use biopharma parts and AI and vitality infrastructure merchandise. Polymers had their first interval of development since Q1 2024.

Local weather & Sustainability Applied sciences returned to development as gross sales had been up 9%. This section benefited from stable cargo and order charges in refrigerated door instances and CO2 techniques. This section benefited from document shipments for warmth exchangers in North America.

Total, Dover enters 2026 with sturdy momentum in its enterprise.

Supply: Investor Presentation

Dover expects adjusted earnings-per-share in a spread of $10.45 to $10.65 for 2026. On the midpoint, this could characterize 9.8% development from 2025. Natural income development is  projected to be in a spread of three% to five%.

Progress Prospects

Dover has pursued development by increasing its buyer base and thru bolt-on acquisitions. To reshape its portfolio and maximize its long-term development, Dover routinely executes a sequence of bolt-on acquisitions and occasional divestments.

The administration workforce is consistently targeted on delivering essentially the most worth to shareholders by way of portfolio transformation, which has usually been profitable. The corporate’s prospects for 2025 additionally look sturdy in each facet of its enterprise.

Supply: Investor Presentation

All the firm’s segments are projected to see no less than single-digit natural development in 2026.

At the moment, the corporate is a extremely diversified industrial firm with a horny development profile. As well as, Dover can also be more likely to improve its earnings per share through opportunistic share repurchases.

We see 8% long-term earnings-per-share development within the years to come back, pushed primarily by income will increase, with a lift from share repurchases decreasing the float.

Aggressive Benefits & Recession Efficiency

Dover is a producer of business tools. The corporate provides extremely engineered merchandise which can be important to its clients. Switching to a different provider can also be uneconomic for its clients as a result of the danger of decrease efficiency is materials.

Subsequently, Dover basically operates in area of interest markets, which provide the corporate a big aggressive benefit. This aggressive benefit helps clarify Dover’s constant long-term development trajectory.

Alternatively, Dover is weak to recessions as a result of its reliance on industrial clients. Within the Nice Recession, its earnings per share had been as follows:

• 2007 earnings-per-share of $3.22
• 2008 earnings-per-share of $3.67 (14% enhance)
• 2009 earnings-per-share of $2.00 (45% decline)
• 2010 earnings-per-share of $3.48 (74% enhance)

Dover received by way of the Nice Recession with only one 12 months of decline in its earnings per share, and the corporate nearly absolutely recovered from the recession in 2010.

Given its sensitivity to financial cycles, it’s spectacular that Dover has grown its dividend for 69 consecutive years.

One more reason is administration’s conservative dividend coverage, which targets a payout ratio of round 30%. This coverage gives a large margin of security throughout tough financial durations. The anticipated payout ratio for 2026 is simply 20%.

Total, Dover will undoubtedly proceed to lift its dividend for a lot of extra years due to its low payout ratio, respectable recessions resilience, and wholesome stability sheet.

Valuation & Anticipated Returns

Dover is anticipated to generate earnings-per-share of $10.55 for 2026. Which means the inventory trades at 22 instances this 12 months’s earnings, which is greater than our estimate of truthful worth at 18 instances earnings.

That suggests a ~3.9% annual headwind to complete returns from valuation compression over the following 5 years.

Together with 8% anticipated annual earnings-per-share development, the 0.9% present dividend yield, and the annualized compression of the price-to-earnings ratio, we count on Dover to supply 4.5% common annual return over the following 5 years.

This places Dover inventory into the territory of a maintain score.

Closing Ideas

Dover has a powerful dividend development document, with seven many years of dividend raises. That is a powerful achievement, notably given the corporate’s dependence on industrial clients, who are likely to wrestle throughout recessions.

Dover has persistently grown its earnings per share through the years, which has translated into annual dividend will increase.

This technique offers the corporate ample room to proceed rising for a lot of extra years. Nevertheless, the inventory is overpriced, that means it earns a maintain score.

Moreover, the next Certain Dividend databases include essentially the most dependable dividend growers in our funding universe:

When you’re in search of shares with distinctive dividend traits, contemplate the next Certain Dividend databases:

The most important home inventory market indices are one other stable useful resource for locating funding concepts. Certain Dividend compiles the next inventory market databases and updates them month-to-month: