10 Best Dividend Growth Stocks to Buy and Hold in 2025

7. Roper Technologies, Inc. (NASDAQ:ROP)

5-Year Annual Dividend Growth Rate: 10.15%

Roper Technologies, Inc. (NASDAQ:ROP) ranks seventh on our list of the best dividend aristocrat stocks. The Florida-based company manufactures and distributes industrial equipment. The company has a history of strategically reinvesting capital in acquisitions that drive growth through a thoughtful and disciplined approach. Over recent years, it has achieved consistent growth in revenue and earnings, with revenue rising from $4.8 billion in 2021 to $6.2 billion in 2023. With ample capacity for mergers and acquisitions and a robust pipeline of promising opportunities, the company is well-equipped to continue executing its strategic and methodical investment strategy.

Roper Technologies, Inc. (NASDAQ:ROP) reported solid earnings in the third quarter of 2024. The company posted revenue of $1.76 billion, up 13% from the same period last year. It reported a 6% rise in GAAP net earnings, reaching $368 million, while adjusted net earnings grew by 7% to $499 million. Moreover, during the quarter, the company completed its acquisition of Transact Campus, which has since been integrated with its CBORD business. This acquisition strengthens its portfolio by adding another high-quality vertical software business, presenting significant value-creation opportunities for shareholders.

NZS Capital, LLC made the following comment about ROP in its Q3 2024 investor letter:

“In the quarter we added American Tower, the telecom infrastructure company, as a resilient position and promoted Roper Technologies, Inc. (NASDAQ:ROP) to resiliency. Roper provides vertical market software. Our exposure to AI at a portfolio level did not change much, but American Tower and Roper diversified the exposure in the resilient part of our portfolio. We trimmed Microsoft and Nvidia and added back to Lam Research, Cadence and Lattice on more attractive valuations provided by the market rotation.”

Roper Technologies, Inc. (NASDAQ:ROP) also demonstrated a solid cash position in Q3 2024. The company’s operating cash flow of $755 million grew by 17% on a YoY basis. Its free cash flow amounted to $719 million, also up by 15% from the prior-year period. This strong cash has enabled the company to grow its dividends for 33 years in a row. Currently, it pays a quarterly dividend of $0.825 per share and has a dividend yield of 0.63%, as of December 29.

Roper Technologies, Inc. (NASDAQ:ROP) was included in 40 hedge fund portfolios at the end of Q3 2024, up from 38 in the previous quarter, according to Insider Monkey’s database. The stakes held by these funds have a total value of more than $2.2 billion.