Key Takeaways
💰 Dover maintains a 68-year streak of dividend increases, with a current yield of 1.21% and a low payout ratio of 27%, supporting continued dividend growth.
📈 Free cash flow totaled $562 million over the trailing twelve months, providing ample coverage for dividends and reinforcing financial flexibility.
🧐 Analyst consensus is a “Moderate Buy” with an average price target of $206.33, reflecting cautious optimism and long-term confidence despite recent target reductions.
📊 The latest earnings showed margin improvement and strong results in biopharma and clean energy segments, offsetting softness in vehicle service and food retail markets.
Last Update: 5/1/25
Dover Corporation (DOV) is a diversified industrial company with a decades-long record of operational strength, reliable cash flow, and disciplined capital deployment. With a 68-year streak of dividend increases and a solid balance sheet, it has established itself as a long-term income generator. The company operates across sectors including engineered products, fueling systems, climate and sustainability technologies, and biopharma components—areas that offer both steady demand and room for innovation.
Under CEO Richard Tobin, Dover has focused on margin expansion and growth in high-return markets like data centers and clean energy. Recent earnings showed strong cost control and margin performance despite revenue softness in a few segments. While the stock has pulled back from recent highs, current valuation levels and strategic positioning continue to support its long-term appeal.
Recent Events
Looking at Dover’s latest quarterly update through the end of March 2025, revenue came in a touch lower than the year before, down 0.9%. Not ideal, but hardly a red flag. More notably, earnings took a sizable dip—off over 60% year over year. That might raise some eyebrows at first glance, but it’s important to understand that much of this came from short-term margin compression and a shift in some customer demand, not a fundamental problem in the business.
Even with the earnings slide, Dover maintained a profit margin near 30% and posted a return on equity close to 17%. That’s solid performance in an environment that hasn’t been kind to industrials across the board. The company also reported strong free cash flow—$922 million on a trailing basis—which gives it flexibility to handle debt, buybacks, and of course, those dependable dividends.
On the balance sheet side, things look pretty healthy. With nearly $1.8 billion in cash and around $3 billion in total debt, Dover is in a strong position. The debt-to-equity ratio sits at a manageable 41%, and with $1.67 billion in EBITDA, there’s more than enough cushion to keep financial obligations in check.
Key Dividend Metrics
🟢 Forward Dividend Yield: 1.21%
🟡 5-Year Average Yield: 1.38%
🟢 Annual Dividend Rate: $2.06 per share
🟢 Payout Ratio: 27.33%
🟢 Consecutive Years of Increases: 68
🟡 Last Dividend Payment: March 14, 2025
🟢 Upcoming Ex-Dividend Date: February 28, 2025
Let’s be clear—the current yield isn’t going to turn heads. But that’s often the case with companies that have run up in price while continuing to grow dividends steadily. The important part is that Dover’s payout is well covered and firmly rooted in long-term discipline. You’re not getting a stretched yield here, and that’s exactly why income investors tend to trust it.
Dividend Overview
At just over 1.2%, Dover’s forward yield sits below the company’s five-year average and far below what you’ll find in higher-risk sectors. But this isn’t a stock for those chasing yield. It’s for investors looking to build a stream of growing income that doesn’t depend on constant attention or aggressive financial engineering.
With a payout ratio under 30%, Dover leaves itself a wide margin for reinvestment, future acquisitions, and more dividend growth. This kind of setup doesn’t just support a dividend—it supports growing that dividend through any number of economic cycles. Even in tougher years, there’s plenty of room to keep increases coming without straining the business.
The reliability of that dividend is also reinforced by ownership. Institutions hold over 86% of the float, and short interest is minimal. That says a lot about how Dover is viewed by professional investors: dependable, stable, and not prone to sudden surprises.
Dividend Growth and Safety
Here’s where Dover really stands out. This is one of those rare names that hasn’t just paid a dividend for decades—it’s raised it every single year since the Eisenhower administration. That’s a 68-year streak. And it’s not just ceremonial penny raises. Dover has built a track record of consistent mid-single-digit growth in its dividend, often in the 5% to 7% range.
This consistency reflects a company that knows its strengths. It generates reliable cash flow, invests wisely, and keeps its payout growing at a pace that shareholders can count on. Even when earnings dip—like they did in this most recent quarter—the dividend isn’t at risk. Not even close.
The company’s current earnings per share stand at $7.53, and with a dividend of $2.06, it’s only using a fraction of its profits to fund distributions. That’s the kind of conservative management dividend investors appreciate. They’re not maxing out the payout just to look appealing. They’re growing it responsibly, with an eye on the long game.
Stock performance over the past year has been a bit soft, down just under 4%, and it’s now trading below both its 50-day and 200-day moving averages. That’s not necessarily a bad thing if you’re looking to add or start a position. For long-term investors, pullbacks in names like this often present better entry points—not just on the price front but for locking in a more attractive starting yield.
All things considered, Dover remains a textbook example of steady dividend investing. It doesn’t overextend, it doesn’t chase trends, and it doesn’t falter when markets get messy. It just keeps paying—and keeps growing that payment year after year.
Cash Flow Statement
Dover’s trailing twelve-month cash flow data shows a business that’s still generating strong internal capital, though at a lower level than the prior two years. Operating cash flow came in at $738 million, a noticeable drop from the $1.3 billion seen in 2022. This reflects some cooling in earnings and working capital shifts, but not a collapse in operations. Free cash flow totaled just over $562 million after accounting for $175 million in capital expenditures—down from peak levels but still firmly positive and more than enough to cover dividend obligations with room to spare.
On the investing side, the company reported a $1.45 billion inflow, which is a sharp contrast to prior years when this figure was negative. This likely includes proceeds from divestitures or portfolio reshuffling. Meanwhile, Dover stepped up its capital returns to shareholders, with over $1.3 billion flowing out through financing activities. This includes $40 million in buybacks and possibly dividend payments, although the larger bulk suggests repayment of prior obligations. Dover closed the period with $1.8 billion in cash, a substantial increase from the $415 million held just two years ago—offering both a safety net and potential dry powder for future investments or returns.
Analyst Ratings
🟢 Dover Corporation (DOV) has seen a recent wave of analyst activity, with several firms adjusting their ratings and price targets following the company’s latest results and broader industrial sector trends.
🟡 Baird kept its rating at “Outperform” but trimmed the price target from $238 to $219. Their stance reflects ongoing confidence in Dover’s longer-term fundamentals, though they’re taking a more measured view on near-term growth.
🟡 Barclays maintained its “Equal-Weight” rating while nudging the price target from $180 to $185. The adjustment suggests that while Dover remains well-positioned, analysts are reserving stronger endorsements until clearer growth drivers emerge.
🟢 Citigroup continues to view the stock favorably with a “Buy” rating, although the price target was lowered from $244 to $201. This suggests lingering concerns around earnings visibility in the short term, despite structural positives in key end markets.
🟡 Morgan Stanley initiated coverage with an “Equal-Weight” rating and a price target of $185. The firm highlighted Dover’s opportunities in high-growth areas like clean energy and biopharma, while also noting some caution over the durability of recent tailwinds.
📊 The current analyst consensus is a “Moderate Buy,” with an average price target of $206.33. That represents about 21% upside from the current share price, pointing to a cautiously optimistic outlook from the analyst community.
Earning Report Summary
A Balanced Start to 2025
Dover’s first quarter results for 2025 painted a picture of a company finding balance—navigating headwinds in some areas while leaning into strength in others. Revenue came in at $1.87 billion, down slightly from a year ago, but the story wasn’t in the top line. It was in the margins. Dover managed to deliver adjusted earnings per share of $2.05, which came in ahead of expectations, thanks in large part to tighter cost control and smart operational execution.
Leadership pointed out that, while not everything fired on all cylinders this quarter, the business stayed on course. Richard Tobin, Dover’s CEO, emphasized the company’s traction in fast-growing sectors like biopharma and data center thermal solutions—both of which are seeing increased demand and continued investment. That momentum showed up clearly in the Pumps & Process Solutions segment, where organic growth hit 7%.
Segment Trends: Strength and Soft Spots
Another bright spot was the Clean Energy & Fueling segment. It notched a modest 2% organic growth, but more importantly, the demand trends looked sustainable. Products tied to clean energy systems and retail fueling stood out as key contributors to that lift. Dover has been making strategic investments in these areas, and they seem to be paying off.
Not all the news was upbeat. The Engineered Products division saw lower volumes in vehicle services and aerospace components, which pulled down results. Dover is already taking steps to adjust the cost base in that segment to protect profitability moving forward.
Meanwhile, Climate & Sustainability Technologies had a softer quarter, mostly due to weaker demand in food retail and engineering services. But there was some silver lining here too—margins improved by 120 basis points. A more favorable product mix and ongoing productivity efforts helped cushion the revenue decline.
Looking Ahead
Despite the uneven quarter, Dover is entering Q2 with a healthy backlog, which should provide some runway for stable performance in the near term. Management remains focused on expanding in higher-growth markets, particularly biopharma and technologies tied to data centers. The tone from leadership was confident but realistic—recognizing the challenges ahead while staying committed to the long-term plan.
This quarter wasn’t about big swings or surprises. It was about showing that Dover can stay steady in a mixed environment, continue investing in the right areas, and still deliver earnings upside even when revenue comes under pressure. That kind of consistency tends to resonate with long-term investors, especially those looking for reliable dividend payers that also know how to adapt.
Chart Analysis
Price Trend and Moving Averages
DOV has spent most of the past year in a gradual uptrend, supported by a steady climb in the 200-day moving average. That longer-term trend started to flatten out in March, just as the stock broke below both its 50-day and 200-day moving averages. The 50-day has now rolled over sharply, a sign that shorter-term momentum has shifted. Price action in the last month of the chart shows a steep drop followed by a rebound attempt, but the stock remains below both key moving averages—typically a sign of lingering weakness.
There were several attempts to push above the 200 level during late 2023 and early 2024, but each was met with resistance and followed by selling pressure. That repeated rejection near the highs formed a rounded top pattern, which eventually gave way to the recent decline. The steep drop in April suggests a capitulation-type move, followed by an early-stage recovery. While the price has bounced, it’s still in a recovery phase with technical damage yet to be repaired.
Volume Behavior
Volume remained fairly steady through much of the year, but spikes in volume around the April selloff indicate heavy distribution. That surge in participation during the selloff, followed by lighter volume on the bounce, implies the move up may not yet be built on firm footing. That said, increased volume near bottoms can sometimes hint at institutional repositioning.
Volume earlier in the year showed periodic accumulation, especially during rallies in October and January, but that trend seems to have reversed as the price fell sharply through key support.
Relative Strength Index (RSI)
The RSI tells a similar story. For much of the year, it hovered in a healthy range, trending between 40 and 60, occasionally pushing toward overbought territory without major concern. That changed sharply in March and April when the RSI broke below the 30 line, slipping into oversold territory. This kind of move often signals that selling pressure has gone too far too fast, which aligns with the sharp bounce seen at the end of the chart.
Currently, the RSI is approaching the upper end of the range again, near 70. That’s not an outright red flag, but it does suggest the stock might need to consolidate or pull back slightly before making a sustained move higher.
Overall Picture
DOV is trying to recover after a hard hit, but it hasn’t yet broken back into a strong technical setup. With both moving averages above the current price and a recent breakdown in momentum, this remains a stock in repair mode. The recent uptick in price and RSI is encouraging, but confirmation through stronger volume and a move above resistance would help make the case for renewed strength.
Management Team
Dover Corporation is led by a management team that prioritizes operational execution and consistent returns. Richard J. Tobin, who has served as President and Chief Executive Officer since 2018, brings a measured and results-oriented style to the company. His leadership has helped Dover focus on margin expansion, strategic acquisitions, and staying disciplined with its capital. Under Tobin’s guidance, Dover has trimmed away slower-growth segments and leaned into higher-value areas such as clean energy components, data center cooling systems, and single-use biopharma products.
The team has a long-term mindset, one that avoids overreacting to temporary market conditions. Their focus remains steady: improve efficiency, maintain healthy margins, and ensure returns on invested capital are accretive. That philosophy is evident in how the company has handled volatility—keeping the dividend growing, managing the balance sheet conservatively, and avoiding dramatic swings in strategy. Each operating segment has enough autonomy to respond to market conditions quickly, but strategic alignment remains tight across the business. Dover’s leadership doesn’t chase short-term wins but instead steers the company toward stable, compounding returns year after year.
Valuation and Stock Performance
DOV has seen some ups and downs over the past year, with shares moving between a high of around $222 and a low near $143. As of now, the stock sits in the $170s, well off its highs and trading below key technical averages. This pullback has brought the valuation to a more neutral zone. The forward price-to-earnings ratio is roughly 18.3, slightly under its five-year average, suggesting the market is applying a bit more caution after the recent earnings softness.
The company trades at around 3.0 times sales and 3.2 times book value. These levels reflect a premium, but one that Dover has generally justified through strong operating margins and a solid return on equity profile. The PEG ratio is hovering just above 2, suggesting that while future growth is priced in, it’s not excessive by industrial sector standards.
Performance-wise, the stock is down nearly 4 percent over the past year, while broader markets have moved higher. While that underperformance might frustrate some investors, it has helped adjust expectations and may open a window for long-term positioning. Technical indicators show that DOV remains below its 50-day and 200-day moving averages, and although it has bounced off its recent lows, it hasn’t yet regained clear upward momentum. The relative strength index, which had dipped into oversold territory, is now back near neutral, hinting at a potential base forming.
Risks and Considerations
Dover’s end markets are cyclical by nature. Weakness in sectors like automotive service, aerospace, and food retail equipment can drag on quarterly results when broader economic activity slows. In the most recent period, these areas did see some pressure, and the company responded by tightening costs. If softness persists, Dover could face a few more quarters of margin compression, even as its growth investments play out over time.
Another ongoing risk is input cost inflation and supply chain instability. While much of the disruption from recent years has passed, unexpected spikes in material prices or logistics delays can still affect segment margins. Dover’s diversified sourcing and steady pricing strategy offer some insulation, but they’re not immune to global volatility.
Currency exposure is a smaller but still present risk, particularly in Europe and parts of Asia where the company operates. Exchange rate swings may influence reported results, even when local business fundamentals remain solid.
The company’s acquisition strategy, while generally successful, also carries execution risk. Dover tends to be selective and careful with integration, but as it leans into higher-tech and faster-moving sectors like biopharma and clean energy, maintaining synergies and capturing expected returns will require close attention.
Lastly, regulatory developments tied to energy, environmental standards, and healthcare products could impact parts of Dover’s portfolio. The company often aligns well with these shifts, but policy changes can still introduce delays or additional costs that affect specific product lines.
Final Thoughts
Dover Corporation continues to be a study in steady execution. It’s not a company chasing the hottest trends or swinging for the fences with flashy acquisitions. Instead, it plays the long game—focused on durable cash flow, strategic reinvestment, and building shareholder value one quarter at a time. That approach has earned it a spot among long-standing dividend payers and made it a reliable part of many portfolios over the decades.
With shares pulling back from their highs, the valuation looks more reasonable, especially for those who believe in the company’s long-term positioning. Areas like biopharma and data center technology don’t just offer growth—they bring recurring demand and pricing power. Dover’s presence in these sectors is still expanding, but the direction is clear.
Leadership remains focused, the balance sheet is in good shape, and the dividend is well-supported. Even as some segments face short-term pressure, Dover is leaning into the right trends and managing its core business with consistency. That steady hand, combined with strategic exposure to modern industrial needs, gives the company a runway that looks intact despite near-term challenges.