10 Dividend Stocks with Sustainable Payout Ratios

3. Dover Corporation (NYSE:DOV)

5-Year Average Payout Ratio: 30.05%

Dover Corporation (NYSE:DOV) is an Illinois-based US manufacturer that produces a wide array of industrial equipment and components. The company continues to evolve alongside changes in the industrial landscape, adapting to shifting market conditions and refining its strategic approach. With an eye on long-term growth, investors and analysts closely monitor its financial results and key initiatives to assess its current standing and future prospects.

In the fourth quarter of 2024, Dover Corporation (NYSE:DOV) posted $1.9 billion in revenue, marking a modest 1% increase year-over-year. However, GAAP earnings from continuing operations fell 8% to $238 million, and GAAP diluted EPS declined 7% to $1.72. On an adjusted basis, earnings from continuing operations held steady at $305 million, while adjusted diluted EPS rose slightly by 1% to $2.20.

Dover Corporation (NYSE:DOV) closed the quarter with a robust cash balance of over $1.8 billion in cash and equivalents, a notable increase from $400 million in the prior year. For the full year, the company generated more than $1 billion in operating cash flow, underscoring its strong financial footing. It currently offers a quarterly dividend of $0.515 per share and has a dividend yield of 1.28%, as of April 17. The company holds one of the longest dividend growth streaks in the market, spanning 68 years.