10 Magnificent Dividend Growth Stocks to Invest In

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

5-Year Average Dividend Growth Rate: 10.11%

Roper Technologies, Inc. (NASDAQ:ROP) is a Florida-based manufacturing company that specializes in industrial equipment. The company’s success is largely driven by its strategic approach to mergers and acquisitions (M&A). By focusing on smaller businesses with strong market positions and low capital requirements, the company ensures its acquisitions remain competitive while maintaining high customer retention. Rather than pursuing high-risk, high-growth opportunities, Roper prioritizes businesses with stable cash flow. This disciplined M&A strategy has resulted in exceptional capital efficiency, as reflected in its Cash Return on Investment (CRI), which has surpassed 500% in recent years. This efficiency underscores Roper’s ability to generate significant cash flow with minimal capital investment. Since the start of 2025, the stock has surged by over 14.5%.

Roper Technologies, Inc. (NASDAQ:ROP) reported strong earnings in the fourth quarter of 2025. The company’s revenue came in at $1.88 billion, which showed a 16.3% growth from the same period last year. Adjusted net earnings rose by 10% to $520 million. In line with this, the company allocated $3.6 billion in capital toward acquiring high-quality vertical software businesses. Notable acquisitions included Procare Solutions, a leading provider of early childhood education software, and Transact Campus, which was successfully integrated with the CBORD education and healthcare software division.

Roper Technologies, Inc. (NASDAQ:ROP) currently offers a quarterly dividend of $0.825 per share and has a dividend yield of 0.56%, as of March 9. It is one of the best dividend aristocrat stocks on our list as the company has raised its payouts for 33 years in a row. This dividend growth is attributed to the company’s strong cash position. In FY24, its operating cash flow came in at $2.4 billion and free cash flow amounted to nearly $2.3 billion. The operating cash flow and free cash flow showed YoY growth of 17% and 16%, respectively.