Dover Corp's Dividend Analysis
Insight into Dover Corp's Upcoming Dividend and Historical Payouts
Dover Corp (NYSE:DOV) recently announced a dividend of $0.51 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Dover Corp's dividend performance and assess its sustainability.
What Does Dover Corp Do?
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Dover Corp is a diversified industrial manufacturing company with a portfolio of products and services that cater to various sectors. The company's offerings range from digital printing for consumer goods to equipment for the waste collection, fluid transport, and refrigeration industries. After the spinoff of Apergy, Dover Corp operates through five segments, ensuring a broad base of revenue streams, primarily in the United States.
A Glimpse at Dover Corp's Dividend History
Dover Corp has maintained a consistent dividend payment record since 1956, distributing dividends quarterly. It is recognized as a dividend king for its remarkable track record of increasing dividends annually for at least the past 67 years. To visualize Dover Corp's commitment to shareholder returns, below is a chart depicting the historical trends of the company's annual Dividends Per Share.
Breaking Down Dover Corp's Dividend Yield and Growth
Dover Corp currently has a 12-month trailing dividend yield of 1.46% and a forward dividend yield of 1.47%, indicating anticipated dividend growth over the next year. Over the past three years, the annual dividend growth rate was a modest 1.20%. However, this figure rises to 1.90% when looking at a five-year span, and jumps to 4.20% over the past decade, reflecting a steady increase in shareholder value. The 5-year yield on cost for Dover Corp stock currently stands at approximately 1.60%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Dover Corp's dividends can be examined through its dividend payout ratio, which is currently at 0.28. This indicates a healthy balance between distributing earnings as dividends and retaining profits for growth and stability. Further affirming the company's financial health is Dover Corp's profitability rank of 8 out of 10, highlighting strong profitability prospects and a consistent record of positive net income over the past decade.
Growth Metrics: The Future Outlook
Future dividend sustainability is also linked to Dover Corp's growth prospects. With a growth rank of 8 out of 10, the company's trajectory is favorable. Dover Corp's revenue per share and 3-year revenue growth rate, averaging 6.90% annually, outperform approximately 50.95% of global competitors. The company's 3-year EPS growth rate and 5-year EBITDA growth rate, at 14.10% and 15.70% respectively, further outperform significant portions of global competitors, indicating robust growth potential.
Next Steps for Investors
In conclusion, Dover Corp's dividend payments, growth rate, payout ratio, profitability, and growth metrics present a compelling case for investors seeking stable and growing dividends. With a strong track record as a dividend king and solid financial and growth indicators, Dover Corp appears to be a noteworthy candidate for value investors focused on long-term income generation. Will Dover Corp continue its legacy of dividend excellence? For investors seeking similar opportunities, GuruFocus Premium offers access to a High Dividend Yield Screener to discover high-yield stocks.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
