Up to date on March 4th, 2026 by Nathan Parsh
Roper Applied sciences (ROP) has elevated its dividend payout for 33 consecutive years, making it one of many Dividend Aristocrats.
The Dividend Aristocrats are a choose group of 69 shares within the S&P 500 which have had 25+ years of consecutive dividend will increase. We imagine they’re among the many greatest long-term investments within the inventory market.
You may obtain a full checklist of all Dividend Aristocrats (together with vital monetary metrics that matter) by clicking on the hyperlink under:
Disclaimer: Certain Dividend will not be affiliated with S&P International in any means. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain Dividend’s personal assessment, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s primarily based. Not one of the info on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official info.
To change into a Dividend Aristocrats, an organization wants a robust enterprise mannequin, sturdy aggressive benefits, and the flexibility to face up to international recessions.
The Dividend Aristocrat are high-quality dividend progress shares. Much more interesting is Roper’s excessive dividend progress fee. The newest enhance was one other 10% elevate. This kind of elevate isn’t out of the abnormal as the corporate’s dividend has a compound annual progress fee of practically 12% over the past decade.
Even among the many Dividend Aristocrats, dividend hikes of 10% are uncommon, which makes Roper’s dividend will increase over the past decade very spectacular. This text will focus on Roper’s enterprise, progress potential, and valuation.
Enterprise Overview
Roper designs and develops software program, together with each software-as-a-service and licensed know-how, and engineered merchandise and options. Roper has a various portfolio of services, which it gives to a mess of sectors, together with healthcare, transportation, meals, power, water, and training.
Roper focuses on three principal enterprise segments:
- Software Software program
- Community Software program
- Know-how Enabled Merchandise
Supply: Investor Presentation
The Software Software program enterprise contains Aderant, CBORD, CliniSys, Knowledge Improvements, Deltek, Frontline, IntelliTrans, PowerPlan, Strata, and Vertafore as its principal merchandise.
The Community Software program enterprise contains its principal merchandise: ConstructConnect, DAT, Foundry, iPipeline, iTradeNetwork, Loadlink Applied sciences, MHA, SHP, and SoftWriters.
Lastly, the Know-how Enabled Merchandise section contains CIVCO Medical Options, FMI, Inovonics, IPA, Neptune, Northern Digital, rf IDEAS, and Verathon as its principal merchandise.
Roper has broadly benefited from the regular growth of the U.S. financial system over the previous decade. We imagine the corporate can keep a constructive progress trajectory for a few years going ahead.
Progress Prospects
Roper is uniquely positioned to generate sturdy progress throughout its enterprise, even when the broader U.S. financial system faces challenges comparable to inflation and geopolitical danger.
Supply: Investor Presentation
On January twenty seventh, 2026, Roper reported its This fall outcomes for the interval ending December thirty first, 2025. Quarterly revenues and
adjusted EPS have been $2.06 billion and $5.21, up 10% and eight% year-over-year, respectively. Natural progress was 4% for the interval, with
acquisitions including 5%, reflecting continued power throughout Roper’s diversified software program and know-how portfolio.
Through the quarter, the corporate continued to actively deploy capital, repurchasing $500 million of shares and constructing
on a 12 months by which it invested $3.3 billion in strategic acquisitions together with CentralReach and Subsplash, whereas persevering with to advance AI-driven innovation throughout its companies.
Administration initiated full-year 2026 adjusted EPS steerage of $21.30 to $21.55. On the midpoint, this might signify 7.2% progress from 2025.
Aggressive Benefits & Recession Efficiency
Over the previous a number of years, Roper pursued an asset-light enterprise mannequin, with a selected give attention to software program and engineered services. The corporate adopted this technique to develop margins, by lowering capital expenditure wants, whereas additionally producing recurring income.
This has resulted in a lot stronger money conversion over time and is prone to additional enhance its money conversion ratio transferring ahead.
These elements give Roper great aggressive benefits. Its excessive margins and operational effectivity present it with ample money movement, which could be invested to remain forward of the competitors.
One other aggressive benefit that Roper has is that it’s extremely diversified throughout the know-how sector. It owns ~27 impartial companies with management positions in area of interest markets. Moreover, these finish markets are fairly diversified and provide sturdy recurring income and buyer retention.
Buyers must also be aware that previously, Roper was a cyclical enterprise. It had the capability for very sturdy progress when the financial system was increasing but additionally struggled throughout recessions. Earnings-per-share in the course of the Nice Recession are proven under:
- 2007 earnings-per-share of $2.68
- 2008 earnings-per-share of $3.06 (15% enhance)
- 2009 earnings-per-share of $2.58 (16% decline)
- 2010 earnings-per-share of $3.34 (29% enhance)
As you possibly can see, Roper was not a extremely recession-resistant firm. Earnings-per-share declined 16% in 2009. If the financial system have been to enter a recession within the years forward, Roper may see earnings decline.
Roper additionally has an amazing dividend progress document, numbering 33 years of consecutive dividend will increase. Over the previous decade, DPS has grown yearly by a mean of 11.7%.
We’ve a DPS progress projection of10%, which aligns with Roper’s newest enhance and is definitely supported by the underlying web earnings. We count on Roper to develop earnings-per-share at a fee of 8% yearly via 2031.
Valuation & Anticipated Returns
Roper is a high-quality firm with sturdy progress prospects, due to the excessive demand for its know-how. Subsequently, it shouldn’t be shocking that the inventory has usually held a premium valuation, usually within the mid- to excessive 20x EPS vary.
However with the inventory buying and selling at ~$362 and anticipated earnings-per-share of $21.43 for the 12 months, shares commerce with a price-to-earnings ratio of 16.9.
We’ve a 2031 goal price-to-earnings ratio of 19.0. If shares have been to revert to this goal valuation inside 5 years, then a number of growth would add 2.4% to annual returns over this era.
Coupled this with our earnings progress estimate of 8% and the beginning yield of 1.0%, we forecast whole annual return potential of 11.5% via 2031.
Ultimate Ideas
Roper has a high-quality enterprise mannequin, and eight% annual earnings-per-share progress will not be an unreasonable assumption transferring ahead.
The inventory can also be a Dividend Aristocrat, and because of the corporate’s excessive earnings progress fee, 10%+ annual dividend will increase are potential.
Roper suits the invoice of a fantastic firm and the inventory seems to be undervalued. We imagine that the inventory may present low double-digit returns for shareholders, making it a purchase.
Moreover, the next Certain Dividend databases include probably the most dependable dividend growers in our funding universe:
Should you’re in search of shares with distinctive dividend traits, take into account 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:
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