Updated 3/13/25
With roots going back to 1981, this Sarasota-based business has evolved far beyond its industrial beginnings. Today, Roper owns a diverse portfolio of software and tech-driven companies, many of which operate in highly specialized markets like healthcare, transportation, and financial services.
What sets Roper apart isn’t just the quality of its businesses—it’s the way they’re managed. The company has a clear focus on acquiring high-margin, cash-flow-rich businesses and giving them the room to grow. The result? A company that’s incredibly resilient, consistently profitable, and surprisingly rewarding for dividend-focused investors.
Recent Events
Roper’s most recent numbers reinforce why it’s earned a reputation for consistency. Revenue climbed 16.3% year over year, landing at just over $7 billion for the trailing twelve months. Net income also moved higher, with earnings per share growing nearly 19% during the same period.
That’s not a fluke. It reflects a well-run business model built on recurring revenue and scalable operations. Roper continues to make smart acquisitions, bringing niche players into its portfolio and extracting long-term value. Yes, the P/E multiple is on the high side, but when you peel back the layers, it becomes clear why investors are willing to pay a premium.
Key Dividend Metrics
💸 Forward Dividend Yield: 0.57%
📈 5-Year Average Dividend Yield: 0.53%
💰 Annual Dividend Rate: $3.30
🧮 Payout Ratio: 20.91%
🗓️ Next Ex-Dividend Date: April 4, 2025
🎯 Dividend Growth Streak: 31 years and counting
Dividend Overview
If you’re only looking at yield, Roper might not jump out. But dig a little deeper, and it starts to look much more attractive. The current dividend yield of 0.57% won’t turn heads on its own, but it’s consistent and backed by one of the longest dividend growth streaks in the market.
This isn’t a company chasing yield for the sake of it. Roper takes a more deliberate approach, prioritizing steady, sustainable increases over splashy dividend hikes. With 31 consecutive years of growth, they’ve built a strong foundation—and one that looks set to continue for years to come.
Dividend Growth and Safety
One of the standout features of Roper’s dividend is how well it’s protected. The payout ratio sits comfortably at just under 21%, which means the company retains plenty of earnings to reinvest or keep on hand for flexibility.
That low payout also reflects how strong Roper’s cash flow is. Over the last year, it’s produced $2.18 billion in levered free cash flow—more than enough to cover its dividend several times over. This gives investors confidence that even in tougher times, the dividend isn’t in jeopardy.
Instead of overextending, Roper focuses on sustainable, modest dividend increases. It’s a strategy that’s worked for over three decades, and there’s no sign of it changing.
Chart Analysis
Market Cycle Position and Volume Behavior
The chart of Roper Technologies (ROP) shows signs of having recently exited a reaccumulation phase, followed by a strong markup leg. From late October through early January, the stock was locked in a sideways consolidation zone, which acted as a reaccumulation base. Volume during that period remained fairly steady, with occasional spikes hinting at institutional positioning.
Around early January, a clear breakout occurred on a noticeable uptick in volume, kicking off a strong markup phase. Price quickly surged past both the 50-day and 200-day moving averages, with the 50-day now trending upward and sitting above the 200-day—a technical bullish crossover that adds support to the ongoing trend.
Recent Candle Behavior and Price Action
Looking at the most recent five candles, we’re seeing some subtle shifts. There’s a slight pullback after a strong upward move, with candles showing longer upper wicks. This suggests some selling pressure into strength. The most recent close at 566.42 came after a day where the stock opened at 566.66, hit a high of 569.23, but closed just below the open. While not dramatic, it’s a sign of buyers losing a bit of short-term momentum.
The prior candles also show similar behavior—upper shadows forming as price tries to push higher. This doesn’t indicate a reversal yet, but it does point to some hesitation, likely from traders taking profits after the recent run-up.
Moving Averages and Structure
The 50-day moving average recently crossed back above the 200-day, which is typically a bullish sign and signals a potential longer-term uptrend. Price is currently pulling back toward the 50-day line after peaking near 595. This dip could be a retest of support around the 560–565 zone. As long as that level holds, the broader bullish structure remains intact.
Notably, the 200-day moving average has flattened and started to curl up, confirming the shift in longer-term momentum. The stock is also maintaining a pattern of higher highs and higher lows since the November bottom, which reinforces the current markup structure.
Relative Strength Index (RSI) and Momentum
The RSI is trending lower after hovering in the overbought range above 70. This kind of retreat is healthy after a sharp move higher. It shows that momentum is cooling off but not breaking down. As of now, RSI remains above 50, indicating that bullish momentum is still in play, though it’s taking a breather.
If RSI dips below 50, it could signal a deeper correction, but for now, it’s more of a reset than a reversal. The stock might need to consolidate before making another leg higher.
Volume Analysis
Volume spiked in early January during the breakout and has since normalized. The latest sessions show a drop in volume as the price pulls back, which is constructive—it suggests that sellers aren’t overwhelming the market. A volume spike with a bullish candle could mark the next move higher, especially if it coincides with RSI finding a base.
The volume bars since February have shown a subtle tilt toward green, reinforcing that buyers are still supporting dips. No major red flags have emerged on this front.
Analyst Ratings
Roper Technologies (ROP) has recently drawn a mix of reactions from analysts, with the majority leaning positive. As of March 2025, the average 12-month price target sits at around $639.67, suggesting a potential upside from its current level near $577.83.
🔼 In January, Oppenheimer reaffirmed its rating with a positive outlook and nudged its price target up from $630 to $640. They pointed to Roper’s consistent earnings momentum and the strength of its cash flow engine.
📈 Raymond James also stayed firmly in the bullish camp, maintaining a “Strong Buy” and raising their target from $620 to $655. Their focus was on Roper’s disciplined acquisition strategy and its ability to scale niche businesses effectively.
🚀 Truist joined the list of optimists, keeping their “Strong Buy” call while adjusting their target upward from $665 to $675. They cited improving operating leverage and a smoother-than-expected integration of recent acquisitions.
⚖️ Not everyone is as enthusiastic, though. JPMorgan maintained a “Hold” rating and lifted their target modestly from $539 to $558. Their reasoning centered more on valuation—they like the business, but believe the stock may already be pricing in a lot of good news.
🔻 Barclays took a more cautious stance, downgrading the stock from “Buy” to “Sell” late last year. They trimmed their price target from $625 to $569, expressing concerns around competitive pressures and what they view as a stretched valuation.
📊 Overall, the tone from analysts is still constructive, with a general consensus of “Moderate Buy.” Most seem to agree Roper has a durable business model, but a few are questioning whether that strength is already fully reflected in the stock price.
Earning Report Summary
Strong Finish to the Year
Roper Technologies wrapped up 2024 with a strong set of results that really showcased the consistency this company is known for. Fourth-quarter revenue came in at $1.88 billion, which was a 16% increase from the same time last year. What’s nice is that a good portion of that—about 7%—came from organic growth, while the rest was driven by acquisitions. It’s always encouraging to see a business grow both internally and through smart deals.
Earnings Came in Above Expectations
On the earnings side, Roper posted $462 million in GAAP net income for the quarter, up 22% year over year. On an adjusted basis, net earnings reached $520 million. That translates to adjusted earnings per share of $4.81—comfortably ahead of what most were expecting. It’s clear the company continues to run a tight ship.
Cash Flow Tells the Real Story
The cash flow numbers were also impressive. Roper pulled in $722 million in operating cash during the quarter. Adjusted operating cash flow was up 13%, which is important because it gives the company a lot of flexibility—whether it’s for future acquisitions, paying down debt, or rewarding shareholders.
For the full year, revenue hit $7.04 billion. That’s a 14% bump compared to 2023, with 6% coming from organic growth and the rest from acquisitions. Full-year GAAP net income landed at $1.55 billion, and adjusted earnings were $1.98 billion. Adjusted earnings per share finished at $18.31, showing that Roper continues to deliver consistent results year after year.
Investments Point to More Growth Ahead
One of the big moves during 2024 was Roper’s investment in several software companies, including Procare Solutions and Transact Campus. They spent about $3.6 billion on acquisitions throughout the year. These additions fit neatly into Roper’s strategy of targeting vertical market software businesses with strong recurring revenue.
Free cash flow came in strong, too—$2.3 billion for the year, up 16%. That’s the kind of cash cushion that lets Roper make big moves when opportunities arise without overextending itself.
A Look Toward 2025
Looking ahead, Roper expects adjusted earnings per share in the range of $19.75 to $20.00 for 2025. The company is also forecasting revenue growth of more than 10%, with organic growth between 6% and 7%. It’s a confident outlook and suggests they see continued momentum in both their existing operations and recent acquisitions.
Financial Health and Stability
Roper’s strength goes beyond its dividend. From a financial standpoint, the company is in solid shape. Return on equity stands at 8.5%, while return on assets is just over 4%. Those are good numbers, especially for a business model that’s asset-light and focused on high-margin services.
Debt is present—about $7.8 billion in total—but manageable. The debt-to-equity ratio sits at 41.5%, a level that’s not unusual for a company with Roper’s stable cash flow. The current ratio of 0.40 might seem low at first glance, but given the nature of its business, it isn’t cause for concern.
Cash on hand sits at $188 million, and with strong operating cash flow north of $2.3 billion, Roper doesn’t need to keep a massive cash buffer. It’s the kind of quiet financial strength that tends to go unnoticed—but not by dividend investors.
Valuation and Stock Performance
Let’s talk valuation. Roper isn’t cheap, and it probably won’t be anytime soon. The trailing P/E is up around 40, while the forward P/E sits near 29. That’s well above market average, but Roper’s business model—built around recurring revenue and software margins—demands a premium.
Over the past year, the stock has posted a modest 4% gain. That’s slower than the S&P 500’s pace, but for a company like Roper, short-term moves aren’t the focus. The real value comes in its consistent performance and long-term capital appreciation.
At its current price of $577, the stock is trading below its 52-week high but above both its 50- and 200-day moving averages. That suggests solid underlying strength, even if the stock isn’t in breakout territory.
Risks and Considerations
No investment is without risk, and Roper has its share. One of the most obvious is valuation risk. When you’re paying a premium for a stock, any hiccup—whether it’s slower earnings growth or integration challenges—can send shares lower.
Roper also leans heavily on acquisitions to fuel growth. That strategy has worked well so far, but there’s always a chance of overpaying or misfiring on an acquisition. Integration risk is real, even for seasoned operators like Roper.
Then there’s the competitive landscape. Roper plays in some highly specialized industries, but those spaces are attracting more attention. While its niche focus offers some insulation, it’s not immune to disruption.
And finally, this isn’t the stock for those chasing yield. At just over half a percent, the income stream is more about reliability than richness.
Final Thoughts
Roper Technologies isn’t your typical dividend stock. It doesn’t offer high yield, and it doesn’t grab headlines. But what it does offer is consistency—steady earnings, predictable cash flow, and one of the longest dividend growth streaks in the business.
It’s the kind of name that belongs in the background of a dividend-focused portfolio. It won’t drive explosive short-term returns, but over the long run, its commitment to growth and discipline could quietly make it one of the most reliable performers in the space.
If you value quality, consistency, and a long-term approach to dividend investing, Roper Technologies might just deserve a closer look.