Category Monthly Dividend

Updated on March 8th, 2025 by Felix Martinez

Each year, we individually review each of the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index that have raised their dividends for at least 25 consecutive years.

To make it on the list of Dividend Aristocrats, a company must possess a profitable business model, a valuable brand, global competitive advantages, and the ability to withstand recessions. This is why Dividend Aristocrats can continue to raise their dividends in difficult years.

With this in mind, we have created a list of all 69 Dividend Aristocrats.

You can download your free copy of the Dividend Aristocrats list, along with important financial metrics such as price-to-earnings ratios and dividend yields, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

One of the three newest members to join this list is Nordson Corporation (NDSN). Nordson has an incredible dividend growth track record, with a remarkable 61 years of consecutive increases.

This article will discuss the company’s business overview, growth prospects, competitive advantages, and expected returns.

Business Overview

Nordson was founded in 1954 in Amherst, Ohio, by brothers Eric and Evan Nord, but the company’s roots go back to 1909 with the U.S. Automatic Company.

Today, the company has operations in over 35 countries and engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials. These products have applications ranging from diapers and straws to cell phones and aerospace.

Source: Investor Presentation

On February 19th, 2025, Nordson reported first quarter results for January 31st, 2025. (Nordson’s fiscal year ends October 31st.) The company reported that sales declined 2.8% to $615 million, with net income of $95 million ($1.65 per share). Adjusted EPS fell 7% to $2.06, while backlog grew 15%, indicating strong future demand.

Industrial sales dropped 11% due to weaker demand, while medical sales rose 21%, driven by acquisitions. Advanced Technology Solutions declined 11%. EBITDA was $188 million (31% of sales), down 4%, though profitability remained solid despite lower sales.

For Q2, Nordson expects sales between $650 million and $690 million, with adjusted EPS of $2.30–$2.50. The company sees improving order trends and a growing backlog as signs of recovery. CEO Sundaram Nagarajan remains confident in long-term growth, citing strong portfolio resilience despite market uncertainties.

Growth Prospects

From 2014 through 2024, Nordson grew earnings-per-share by a solid 10% annually. In its investment thesis, Nordson lists factors such as best-in-class technology that boosts client production while cutting costs, a worldwide service model, a balanced income stream, and a successful track record.

A growing demand for disposable goods, productivity investments, mobile computing, an increase in the use of medical devices, and the production of lightweight/lean vehicles are all areas of growth for the company’s adhesive and coating sectors, and would add to the company’s top line.

Nordson will keep making acquisitions to gain access to unique precision technologies and strengthen its competitive advantage.

For example, in 2023 Nordson completed its acquisition of the ARAG Group. ARAG is a global market and innovation leader in developing, producing and supplying precision control systems and smart fluid components for agricultural spraying.

Source: Investor Presentation

Our projection for 2025 earnings, based on management’s guidance midpoint, is for $9.90 per share.

We also project 10% EPS growth over the next five years, driven by an increase in top line revenue, modest margin expansion, and the favorable effects of acquisitions.

Competitive Advantages & Recession Performance

Nordson’s competitive advantage lies in its proprietary precision technologies. The business offers specialized and essential components used in various manufacturing processes.

This has enabled Nordson to muster an enormous installed base of customers worldwide. Due to its extensive global presence, Nordson has diversified its revenue geographically and by industry and segment.

However, this does not imply that Nordson is immune to economic downturns. Earnings decreased by -32% for the year during the Great Financial Crisis before rapidly increasing. Given the company’s reliance on global expansion, another recession could reduce its projections for near-term growth.

Valuation & Expected Returns

Nordson’s current price-to-earnings ratio is 21.7 based on our 2025 forecasted earnings-per-share of $9.90. This valuation is lower than the company’s trailing decade average P/E ratio of about 23.0. Given its solid prospects, we believe that 24 times earnings is a reasonable fair value estimate for Nordson.

Given shares trade under our fair value estimate today, Nordson stock could experience a positive return of roughly 2.3% per year over the next five years from an expanding multiple.

Nordson also has a 1.5% dividend yield, which has increased yearly for 61 years. Furthermore, we forecast a payout ratio of only 32% for 2025, leaving ample room for continued increases in the years ahead.

Combining the company’s 1.5% dividend yield with the 10% forecasted EPS growth rate, and the potential valuation tailwind, we see Nordson stock generating total returns of 13.8% per year in the intermediate term. As a result, Nordson receives a buy rating at this time.

Final Thoughts

The company’s growth prospects seem promising, and Nordson has an impressive track record of earnings and dividends. The company is currently trading at a lower level, which increases its attractiveness.

The company may continue its incredible earnings-per-share growth this year or take a breather and remain flat. However, we believe Nordson will continue growing over the long term. This long-term earnings growth and the very conservative dividend payout ratio should see the company increasing its dividend for many more years ahead.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 8th, 2025 by Felix Martinez

The Dividend Aristocrats are a group of 69 companies in the S&P 500 Index that have increased their dividends for 25+ consecutive years.

Within the Dividend Aristocrats are various types of stocks with differing yields. Some of the Dividend Aristocrats have higher yields, but these high-yielders tend to grow their dividends at a lower rate each year.

At the same time, there are Dividend Aristocrats with low yields. While these may look unappealing on the surface, they often provide higher dividend growth levels from year to year. An example is Brown-Forman (BF.B), a Dividend Aristocrat that has increased its dividend for 41 consecutive years.

There are currently 69 Dividend Aristocrats, including Brown-Forman. You can download an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics like dividend yields and price-to-earnings ratios) by clicking the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Brown-Forman has paid a dividend for 80 years. Thanks to its defensive business model, the company typically provides high dividend increases each year, even during recessions.

This article will discuss Brown-Forman’s growth prospects, valuation, and outlook.

Business Overview

Jack Daniel’s Tennessee Whiskey got its start all the way back in 1865 when Jack Daniel purchased Cave Spring Hollow. The following year, he registered the Jack Daniel Distillery, which is today America’s oldest registered distillery.

Brown-Forman has a large product portfolio focused on whiskey, vodka, and tequila. Its most famous brand is its flagship, Jack Daniel’s whiskey. Other popular brands include Herradura and El Jimador tequila and Finlandia vodka.

Brown-Forman reported revenues of $1.1 billion for its third quarter (fiscal 2025) earnings results. The company’s third quarter earnings saw a 1% decline in Q2 net sales to $1.1 billion, though organic sales grew 3%. Operating income rose 1% to $341 million, and EPS increased 9% to $0.55. For the first half of fiscal 2025, net sales dropped 5% to $2 billion, operating income fell 7% to $622 million, and EPS declined 3% to $0.96. CEO Lawson Whiting expects growth in the second half of the year despite economic challenges.

Sales declines were driven by the divestitures of Finlandia and Sonoma-Cutrer, along with lower volumes across key markets. Whiskey sales remained stable due to Woodford Reserve and Old Forester, but Tequila and ready-to-drink products saw declines. U.S. net sales fell 7% due to weaker Jack Daniel’s and Korbel sales, while international and emerging markets showed mixed performance.

Gross profit declined 8% due to high inventory and cost fluctuations, but lower expenses helped offset losses. Brown-Forman increased its dividend for the 41st consecutive year. The company expects 2%-4% organic growth in net sales and operating income but remains cautious about economic and geopolitical risks.

Source: Investor Presentation

Growth Prospects

Brown-Forman has a strong growth track record; the company even increased its earnings-per-share during the last financial crisis, as demand for alcohol is not especially cyclical. Historical earnings-per-share were driven by a combination of several factors, including revenue growth, rising margins, and the impact of a declining share count.

Because Brown-Forman owns strong brands and is active in the super and ultra-premium alcoholic beverages markets, which see consistent market growth, Brown-Forman should be able to keep its revenue growth going forward.

This has been an important growth factor for Brown-Forman in the past. Brown-Forman’s Jack Daniels brand and its American super-premium whiskeys continue to grow around the globe.

Higher overall sales allow for margin increases due to better economies of scale, which makes the company more efficient overall, and positively impacts its net earnings growth rate.

In addition, Brown-Forman has aggressively repurchased shares in the past decade, which adds some additional growth to its bottom line. Going forward, there is plenty of growth potential left as the company further expands its product line inside and outside its flagship Jack Daniels brand.

Furthermore, the company will purchase growth through acquisitions, for example, its recent purchase of the Diplomático Rum brand. This purchase launched Brown-Forman into the growing super-premium+ rum category. Diplomático Rum is a super-premium rum from Venezuela and is distributed in over 100 countries.

 

Source: Investor Presentation

We are forecasting 6% annual earnings-per-share growth over the next five years.

Competitive Advantages & Recession Performance

Brown-Forman has many competitive advantages. Its famous brands yield significant pricing power. Because of its global scale, it has a highly profitable business with low manufacturing and distribution costs. These qualities help Brown-Forman generate consistently high returns on invested capital.

Brown-Forman is also very resistant to recessions. This is typical among alcohol stocks, as their products tend to be consumed in greater volume when economic times are tough. One could argue that alcohol manufacturers perform well during recessions.

Brown-Forman’s earnings-per-share through the Great Recession are shown below:

• 2007 earnings-per-share of $0.76
• 2008 earnings-per-share of $0.77 (1.3% increase)
• 2009 earnings-per-share of $0.82 (6.5% increase)
• 2010 earnings-per-share of $0.95 (15.9% increase)

As you can see, the company grew its earnings per share every year through the Great Recession. This rare accomplishment demonstrates the company’s defensive business model.

Spirits manufacturers such as Brown-Forman are among the most recession-resistant businesses.

Valuation & Expected Returns

Based on our estimate for 2025 earnings-per-share of $1.80 and a current share price near $36, Brown-Forman shares are currently trading at a P/E ratio 20.

This is a fair multiple, even considering the strength of Brown-Forman’s business. We estimate a fair value P/E ratio of 22.

If shares were to increase to 22 times earnings, this implies the potential for a 1.5% valuation tailwind over the next five years. On this basis, the valuation appears fair.

A strong earnings growth rate of 6% and 2.5% dividend yield will help boost shareholder returns. Overall, we estimate annual returns of 10% over the next five years.

Final Thoughts

Brown-Forman has a dominant position in its core product categories. Its flagship Jack Daniel’s brand should continue to lead the whiskey industry, with high growth from its smaller whiskey brands and tequilas. Emerging markets are also an appealing growth catalyst, and of course, the dividend growth streak is enviable.

Brown-Forman is a good example of a great business trading at an exceptionally fair valuation. The company has a solid dividend and very strong business, the shares look particularly compelling for purchase right now.

Related: My Top 10 Buy & Hold Forever Stocks.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 8th, 2025 by Felix Martinez

At Sure Dividend, we often discuss the merits of Dividend Aristocrats. We believe this exclusive group of stocks has strong brands, consistent profits even during recessions, and durable competitive advantages. These qualities allow Dividend Aristocrats to raise their dividends every year, regardless of the economy’s state.

Of the ~505 stocks comprising the S&P 500 Index, just 69 qualify as Dividend Aristocrats. You can download a copy of the full list of all 69 Dividend Aristocrats, complete with metrics like dividend yields and P/E ratios, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

We individually review all the Dividend Aristocrats each year. The next in the series is The J.M. Smucker Company (SJM).

J.M. Smucker has a long history of dividend growth, having raised its dividend for 28 years in a row. This article will discuss the significant factors for J.M. Smucker’s long dividend history and outlook.

Business Overview

J.M. Smucker has been in business for more than 100 years. It was founded in 1897 at a small cider mill in Orrville, Ohio, in the 19th century.

Today, J.M. Smucker has a market capitalization of $12.5 billion and generates more than $8.2 billion annual revenue. It is a packaged food and beverage company that owns well-known brands such as Smucker’s, Jif, Folgers, and so on. The company also owns a pet food business with brands such as Milk-Bone and 9Lives.

Source: Investor Presentation

In late February, Smucker’s reported (2/27/25) results for the third quarter of fiscal 2025. The company reported net sales down 2% to $2.2 billion due to divestitures and acquisitions. Adjusted EPS rose 5% to $2.61, though a $6.22 per share net loss was recorded due to impairment charges. Operating cash flow fell to $239.4 million, impacted by higher working capital needs and tax timing.

Gross profit grew 7%, driven by pricing and cost efficiencies, but operating income declined due to impairment charges. Coffee sales rose 2% on higher pricing, while pet food and Sweet Baked Snacks saw declines of 9% and 7%, respectively, due to lower demand and contract manufacturing losses. Supply chain disruptions also affected performance.

Smucker updated its fiscal 2025 outlook, projecting a 7.25% sales increase and adjusted EPS of $9.85–$10.15. Free cash flow is expected at $925 million. The company focuses on cost control and growth strategies to drive long-term shareholder value.

Growth Prospects

J.M. Smucker’s industry isn’t growing fast, as demand for food is not growing too much based on economic development. Instead, food consumption is generally growing a little less than economic output, as it is mostly tied to population growth. Still, J.M. Smucker can generate growth in different ways, despite being active in a lower-growth industry.

Acquisitions have been a major source of business growth for the company in the past.

The company regularly acquires smaller companies that are then benefitting from J.M. Smucker’s sales network. On top of that, the company is able to capture synergies when it comes to administration and other areas, which drives the profitability of the companies J.M. Smucker acquires.

As an example, on November 7th, 2023, Smucker’s completed the acquisition of Hostess Brands (TWNK) in a cash-and-stock deal with value of $5.6 billion, which includes debt. Hostess Brands has many sweet baked goods brands, which will expand the product portfolio of Smucker’s and create synergies. However, the deal value is about 13.2 times EBITDA of Hostess Brands, after the expected synergies have been taken into account.

In the long run, we believe that current margin headwinds from rising commodity prices will wane, or that the company will fully pass on those rising costs to consumers. Some organic business growth, some M&A, and the impact of share repurchases should allow J.M. Smucker to grow its earnings-per-share by around 4% a year in the long run, we believe.

Source: Investor Presentation

Competitive Advantages & Recession Performance

J.M. Smucker is not the largest player in the food and beverages space by far, but it is among the leading players in the active segments, such as coffee sold at retailers, peanut butter and other breakfast spreads, pet food, and so on.

J.M. Smucker’s brands are well-known and liked among consumers, thus it is not very likely that new market entrants will disrupt the company’s core business.

A major advantage for J.M. Smucker is its outstanding recession resilience. While consumers do cut back on their spending during economic downturns, they typically do so in discretionary areas—autos, electronics, apparel, and so on. This is why J.M. Smucker and most of its peers have outperformed during recessions in the past.

The company’s earnings-per-share performance during the Great Recession is below:

• 2007 earnings-per-share of $3.15
• 2008 earnings-per-share of $3.77 (20% increase)
• 2009 earnings-per-share of $4.37 (16% increase)
• 2010 earnings-per-share of $4.79 (10% increase)

We see that J.M. Smucker not only managed to grow its earnings-per-share during every year of the Great Recession but also generated a very compelling average growth rate of 15% in that time frame—barely any other company has managed to perform so well during the crisis.

The same held true during the pandemic, as J.M. Smucker also managed to grow its earnings-per-share by 14% in 2020 when the economy was suffering from lockdowns and other COVID measures.

J.M. Smucker’s recession resilience is one of its biggest advantages, making it a suitable choice from a risk perspective.

Valuation & Expected Returns

Using the current share price of ~$117 and the midpoint for earnings guidance of $8.50 for the year, J.M. Smucker trades for a price-to-earnings ratio of 13.7. Given the company’s strong recession performance, and an overly strong growth outlook, we feel that a target price-to-earnings ratio of 16 is appropriate. This is also roughly in line with the company’s 10-year historical average.

As a result, J.M. Smucker is slightly undervalued. An expanding P/E multiple could add 3.5% to SJM’s annual returns over five years. Aside from changes in the price-to-earnings multiple, future returns will be driven by earnings growth and dividends.

We expect 4% annual earnings growth over the next five years. In addition, J.M. Smucker stock currently has a dividend yield of 3.7%.

Total returns could consist of the following:

• 4% earnings growth
• 3.5% multiple expansion
• 3.7% dividend yield

J.M. Smucker is thus expected to return around 11.2% annually through 2030. This is a solid anticipated rate of return, high enough to warrant a buy recommendation.

Final Thoughts

J.M. Smucker is a quality company with a strong dividend growth track record and an outstanding ability to withstand recessions.

Shares are trading slightly below our fair value estimate, leading to high double-digit expected total returns. The current dividend yield is solid and looks safe, but we rate J.M. Smucker a buy right now because of the expected total returns of about 11.2% over the coming years.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

YouTube creator MrBeast—his real name is Jimmy Donaldson—has made millions of dollars from his career as a content creator. Known for stunts like spending 24 hours underwater or a week in a cave, Donaldson is the most-followed creator in the world, according to Forbes, with more than 500 million followers across his social media platforms.

Donaldson has an estimated net worth of $1 billion, according to an estimate by Celebrity Net Worth. Donaldson has his own production company, a streaming partnership with Amazon, a snack brand, a clothing line, and more.

Here’s how MrBeast built his wealth.

Content Creation

Donaldson earned an estimated $85 million between June 2023 and June 2024 from his content and businesses, according to Forbes. In a February 2024 interview with Time, Donaldson said each video makes “a couple million” each in ad revenue and brand deals. Brands pay between $2.5 million to $3 million just to get a shoutout from MrBeast, Marc Hustvedt, who manages Donaldson’s YouTube business, told Time.

Donaldson also told Time that everything he earns—about $600 million to $700 million a year—he reinvests back into his content. “I’ve reinvested everything to the point of—you could claim—stupidity, just believing that we would succeed,” he said. “And it’s worked out.”

The 26-year-old creator has 371 million subscribers on his YouTube channel, “MrBeast.” Donaldson’s content earned nearly 9 billion views in 2024 and landed him the No. 1 spot on Forbes’ Top Creators 2024 list.

Donaldson has pulled off extreme stunts on YouTube like being buried alive for a week, spending a week in solitary confinement, surviving 24 hours in ice, and more. He also creates content where he pays other people to tackle challenges for money, such as spending 100 days in a circle to win $500,000 or spending 100 days in a nuclear bunker with a stranger for $500,000.

Donaldson has another channel, “Beast Philanthropy,” where 100% of the profit from ad revenue, sponsorships, and merchandise sales goes to charity. It features videos such as giving out $30 million worth of food, adopting 100 dogs, and giving away $1 million worth of toys.

Amazon Partnership and Reality Show

Donaldson also hosts a reality competition series called “Beast Games” for Amazon’s Prime Video. The deal with Amazon was valued at close to $100 million, according to Puck and Variety.

The series featured 1,000 contestants competing in challenges similar to Donaldson’s YouTube videos, for a chance at a $5 million cash prize. The show received 50 million views in just 25 days, and was Amazon’s second-largest series debut in 2024, according to Fast Company. The winner of the competition was a father of two who won $10 million—the largest prize for a reality competition ever, per People.

In September, five unidentified contestants on “Beast Games” filed a lawsuit against Donaldson and Amazon for mistreatment and neglect, sexual harassment, hostile working conditions, and more, according to Variety.

Businesses

Donaldson’s other businesses include a snack company, Feastables, and a line of MrBeast merchandise. He also had a virtual burger chain that partnered with restaurants around the country. However, Donaldson stepped away from the burger chain in 2023 amid legal struggles with the brand’s partner, Virtual Dining Concepts.

His snack brand, Feastables, was expected to bring in about $500 million in revenue in 2024, according to Donaldson’s interview with Time. The snacks are sold online by Amazon and at major retailers such as Target, Walmart, Safeway, and 7-Eleven.

Despite a slow start for home sales in 2025, some economists and real estate professionals see promise for the busy spring homebuying season.

The National Association of Realtors’ Pending Home Sales Index fell 4.6% in January to hit an all-time low. Home affordability issues persist as homeownership costs continue to outpace income levels and mortgage rates remain elevated. However, that could change during the spring, which is typically one of the best times to sell a home, according to Realtor.com.

“I see the spring market as an opportunity to start new momentum due to the number of buyers waiting out the markets,” said Phil Crescenzo Jr., Nation One Mortgage Corporation southeast division vice president. 

Mortgage Rates, Inventory Moving in the Right Direction

Falling mortgage rates are one reason for optimism, economists said. The average interest rate on a 30-year fixed mortgage fell to 6.63% this week, according to Freddie Mac. That’s the lowest since mid-December and the seventh consecutive decline.

Other factors are pointing toward a potential pickup in home sales. Notably, inventory is higher, giving browsing house shoppers more options to consider this year.  

“This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season,” said Freddie Mac Chief Economist Sam Khater.

Demographic Trends Could Drive Season

Going into the 2025 spring home sales season, some demographic trends could also help spur the housing market. Recent housing data shows that homebuyers are becoming older, including first-time owners, who made up a record-low share of buyers in 2024.  

“Millennials have reached peak age for marriage and children, both of which are catalysts for homebuying. In addition, more and more baby boomers retire every day. Retirement leads to a change in lifestage and lifestyle, which also corresponds to changes in where and how people live,” said Ali Wolf, chief economist at real estate data firm Zonda. 

As many Baby Boomers approach retirement, they also face rising living costs, housing prices, and health care, which is encouraging many to delay retirement or reenter the workforce.

Roughly 60% of Baby Boomers, or those born between 1946 and 1964, will be able to receive their full retirement age (FRA) Social Security benefits by the end of the year. Yet, only 10% of this generation are fully retired, according to a recent survey by Indeed Flex, an online job portal for temporary work.

In addition, almost half of Baby Boomers said they plan to keep working in 2025, and 35% were unsure if they will retire this year due to the high cost of living.

Consumer prices continue to rise for all Americans, but especially those nearing retirement age. In January 2025, the Consumer Price Index (CPI) for those aged 62 years and older increased by 3.1% compared to a year prior and was 9.3% higher than the CPI for all Americans.

Some advocates have criticized Social Security’s annual Cost of Living Adjustments (COLA) for not keeping up with the inflation, and experts have said the lag has reduced retirees’ buying power. Additionally, Social Security is running out of money and may eventually be unable to provide retirees with full benefits.

“As the aging population heads into retirement age, many do not have enough money saved to live financially secure,” said Novo Constare, CEO and co-founder of Indeed Flex, in a press release. “Previous generations could rely on pensions and affordable living; today’s boomers are navigating a financial landscape where Social Security alone isn’t enough to meet their current needs.”

To bridge the gap between their retirement income and high costs of living, almost one in four retirees consider unretiring and working a temporary job for extra money, vacations, gifts, or socialization, Indeed Flex found.

Updated on March 7th, 2025 by Nathan Parsh

Insurance can be a great business. Insurers collect revenue from policy premiums and make money by investing the accumulated premiums not paid out in claims, known as the float.

Even legendary investor Warren Buffet sees the value of insurance stocks –his investment conglomerate Berkshire Hathaway (BRK.A) (BRK.B) owns GEICO, General Re, and more.

High profitability allows many insurance companies to pay dividends to shareholders and raise their dividends over time. For example, Aflac (AFL) has increased its dividend for 43 years in a row.

This means the company qualifies as a Dividend Aristocrat – a group of 69 companies in the S&P 500 Index with 25+ consecutive years of dividend increases.

You can download a free list of all 69 Dividend Aristocrats, along with important metrics like dividend yields and price-to-earnings ratios, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

This article will take an inside look at Aflac’s business model and what drives its impressive dividend growth.

Business Overview

Aflac was formed in 1955 by three brothers: John, Paul, and Bill Amos. Together, they came up with the idea to sell insurance products that paid cash if a policyholder got sick or injured. In the mid-twentieth century, workplace injuries were common, and no insurance product covered this risk.

Today, Aflac offers a wide range of products, including accident, short-term disability, critical illness, hospital indemnity, dental, vision, and life insurance.

The company specializes in supplemental insurance, which pays out to policyholders if they are sick or injured and cannot work. Aflac operates in the U.S. and Japan, with Japan accounting for approximately ~55% of the company’s net earned premiums. Because of this, investors are exposed to currency risk.

Aflac’s earnings will fluctuate based on exchange rates between the Japanese yen and the U.S. dollar. When the yen rises against the dollar, it helps Aflac because each yen earned becomes more valuable when reported in U.S. dollars.

Aflac’s strategy is to increase premium growth through new customers and increase sales to existing customers. It is also investing in expanding its distribution channels, including its digital footprint, in the U.S. and Japan.

Aflac continues to perform well overall. On February 5th, 2025, Aflac released fourth-quarter and full-year financial results.

Source: Investor Presentation

For the quarter, the company reported $5.4 billion in revenue, which was a 42.1% increase compared to Q4 of 2023. Net earnings equaled $1.9 billion, or $3.42 per share, compared to $268 billion, or $46 per share, in the prior year.

However, this included $1 billion in investment gains, which are excluded from adjusted earnings. On an adjusted basis, earnings-per-share equaled $1.56 versus $1.25 in the prior year. Revenue was $1.24 billion more than expected, while adjusted earnings-per-share was $0.06 below estimates.

For 2024, revenue improved 1.2% to $18.9 billion, and adjusted earnings-per-share were $7.21 compared to $6.23 in the prior year.

Aflac has also aggressive reduced its share count, repurchasing seven million shares at an average price of ~$107 in Q4 2024. The company has 47.3 million shares, or 8.6% of its outstanding share count, remaining on its repurchase authorization.

Growth Prospects

From 2007 through 2020, Aflac grew earnings-per-share by an average compound rate of 8.8% per year, although part of that improvement is related to tax reform. Also, remember that the Yen was generally weakening against the dollar for a good portion of the last decade.

Over the last 10 years, the company’s earnings-per-share had a CAGR of 9.9%, though that growth rate has slowed to 6.9% over the previous five years.

In Japan, Aflac wants to defend its strong core position while expanding and evolving to customer needs. To this point, Aflac Japan is expanding its “third-sector” product offerings. These include non-traditional products such as cancer insurance and medical and income support.

Aflac has enjoyed strong demand in Japan for third-sector products due to the country’s aging population and declining birth rate.

Aflac has two sources of revenue: income from premiums and income from investments. The premium side is generally sticky, with policy renewals making up the bulk of income. However, Aflac operates in two developed markets where we would not anticipate seeing outsized growth in the business.

The other lever available is on the investment side, where most of the portfolio is in bonds. In addition, the share repurchase program has been an important factor, and we believe it will continue to drive earnings per share.

We are forecasting 7% annual growth rate over the next five years.

Competitive Advantages & Recession Performance

Aflac has many competitive advantages. First, it dominates its niche. It operates in supplemental insurance products and is the leading company in that category. Its business model requires low capital expenditures and sells a product that enjoys steady demand.

Aflac’s strong brand is a key competitive advantage. Competition is intense in the insurance industry, considering the commodity-like nature of the products. To retain customers and attract new customers, Aflac invests heavily in advertising.

Aflac is also a recession-resistant company. It remained profitable even during the Great Recession:

• 2007 earnings-per-share of $1.64
• 2008 earnings-per-share of $1.31 (-20% decline)
• 2009 earnings-per-share of $1.96 (49.6% increase)
• 2010 earnings-per-share of $2.57 (31.1% increase)

Notably, Aflac had a tough year in 2008, which is understandable given the deep recession at the time. However, its earnings-per-share came roaring back in 2009 and 2010. More recently, the company continued to grow even during the worst COVID-19 pandemic. Aflac’s earnings-per-share have increased or remained stable over the last 10 years.

Valuation & Expected Returns

Over the last decade, shares of Aflac have traded hands with an average P/E ratio of roughly 11x times earnings.

We believe this is more or less fair value for the security, considering that many insurers trade at a comparable multiple. This lower average valuation multiple makes the robust share repurchase program more effective.

Ongoing owners are much better served if the company buys out past partners at 11x times earnings as opposed to, say, 15x—or 20x times earnings.

Based on 2025’s expected earnings-per-share of $6.93, shares are presently trading hands at 15.6 times earnings. As such, this implies an annual valuation headwind of 6.7% should shares revert to 11 times earnings over the next five years.

In addition, the 6% growth rate and 2.1% starting dividend yield should aid shareholder returns. When all three components are combined, this implies the potential for 2.6% annualized returns.

Aflac’s dividend appears very safe, with an expected dividend payout ratio of 33% for 2025. The dividend has room for future increases even if EPS growth slows. The dividend has a CAGR of 10.9 since 2015, but this growth rate accelerates to 15.7% over the last five years.

Final Thoughts

Aflac is a high-quality company with a profitable business and a strong brand.

The company has increased its dividend for 43 years in a row. Thanks to a low payout ratio and future earnings growth, it should continue to do so.

Aflac is not a high-dividend stock, with a current yield of 2.1%. However, it offers steady dividend increases and a highly sustainable payout.

However, shares are currently trading higher than the company’s historical valuation. This results in low single-digit total returns expected over the next five years, so the security earns a sell rating.

If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 6th, 2025 by Nathan Parsh

At Sure Dividend, we are huge proponents of investing in high-quality dividend growth stocks. We believe companies with long history of raising their dividends will most likely reward their shareholders with superior long-term returns.

This is why we focus so intently on the Dividend Aristocrats.

Our review of each of the 69 Dividend Aristocrats, a group of companies in the S&P 500 Index with 25+ consecutive years of dividend increases, continues with medical supply company Becton Dickinson (BDX).

You can download an Excel spreadsheet with the full list of all 69 Dividend Aristocrats (plus important metrics like dividend yields and price-to-earnings ratios) by using the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Becton Dickinson has grown into a global giant. In 2017, it completed its $24 billion acquisition of C.R. Bard, its largest acquisition ever, bringing together two huge companies in the medical supply industry. Much more recently, in September 2024, it completed its $4.2 billion purchase of Edward Lifesciences’ (EW) Critical Care segment.

The industry’s fundamentals remain very healthy. Aging global populations, growing healthcare spending, and expansion in emerging markets are attractive growth catalysts. In this article, we examine Becton Dickinson’s investment prospects.

Business Overview

Both Becton Dickinson and C.R. Bard have long operating histories. C.R. Bard was founded in 1907 by Charles Russell Bard, an American importer of French silks, after he began importing Gomenol to New York City. At the time, Gomenol was commonly used in Europe, and Mr. Bard used it to treat his discomfort from tuberculosis.

By 1923, C.R. Bard was incorporated. Later, it developed the first balloon catheter, and slowly expanded its product portfolio.

Meanwhile, Becton Dickinson has been in business for more than 120 years. Today, the company employs more than 75,000 employees in over 50 countries. It generates approximately $20 billion in annual revenue, and slightly more than 40% of annual sales come from outside the U.S.

With the addition of C.R. Bard, Becton Dickinson now has three segments: Medical, Life Sciences, and Intervention, which houses products manufactured by Bard. The company sells products in several categories within these businesses. Some of its core product categories include diagnostics, infection prevention, surgical equipment, and diabetes management.

On February 5th, 2025, BD released earnings results for the second quarter of fiscal year 2025, which ended on December 31st, 2024.

Source: Investor Presentation

For the quarter, revenue grew 9.8% to $5.17 billion, which beat estimates by $60 million. On a currency neutral basis, revenue grew 9.6%. Adjusted earnings-per-share of $3.43 compared favorably to $2.68 in the prior year and was $44above expectations.

Organic growth was 3.9% for the period. For the quarter, U.S. grew 12% while international was up 6.7% (up 6.3% on a reported basis). COVID-19 diagnostic revenue was not material during the period.

The Medical segment grew 1.7% to $2.62 billion due to improvements in Mediation Management Solutions and Medication Delivery Solutions. Life Science revenue was up 0.5% to $1.30 billion as gains in Diagnostics Solutions and Specimen Management were partially offset by weaker results in Biosciences. Interventional increased 5.5% to $1.26 billion due to growth in all businesses.

BD provided an updated outlook for fiscal year 2025 as well. The company expects revenue in a range of $21.7 billion to $21.9 billion for the fiscal year, down from $21.9 billion to $22.1 billion previously.  Adjusted earnings-per-share is projected to be in a range of $14.30 to $14.60, compared to $14.25 to $14.60 previously.

Growth Prospects

Becton Dickinson has several avenues for future growth. For starters, the company is a leader in many of the areas that it competes.

Source: Investor Presentation

The company’s products and services are trusted by customers, making them a key component throughout the sector.

Second, aging demographics should provide tailwinds to the sector in general and the company in particular. Last year, the percentage of the global population that was at least 65 years old reached 10%, this is double what it was in the 1970s. This age group is projected to reach 1.6 billion, or 16% of the world’s population, by 2050. As people age, their need for healthcare services increases.

Becton Dickinson has been fairly active in acquisitions, with Bard being one of it largest purchases ever. The company benefits from a size and scale that makes it likely that it will continue to be able to add to its core businesses through bolt on acquisitions.

Becton Dickinson is also about to undergo a transformation to its business model. The company announced at the time of its mostly recent quarterly report that it is going to separate its Biosciences and Diagnostic Solutions businesses by the end of fiscal year 2026 as it looks to become a more pureplay medical device company. This could earn the stock a higher multiple from the market as these are much higher margin businesses and the ones likely to see sustained growth in the future.

BDX has increased earnings-per-share by approximately 7% per year over the past 10 years, and has grown earnings in 8 out of the last 10 years. We feel the company can grow earnings-per-share at a rate of 8% per year through fiscal 2030.

Competitive Advantages & Recession Performance

Becton Dickinson has significant competitive advantages, including scale and a vast patent portfolio, due to its high investment spending.

Becton Dickinson spends over $1 billion per year on research and development. This spending has certainly paid off, with strong revenue and earnings growth over the past several years. The company has obtained leadership positions in their respective categories because of product innovation, a direct result of R&D investments.

These competitive advantages provide the company with consistent growth, even during economic downturns. Becton Dickinson steadily grew earnings during the Great Recession. Becton Dickinson’s earnings-per-share during the recession are as follows:

• 2007 earnings-per-share of $3.84
• 2008 earnings-per-share of $4.46 (16% increase)
• 2009 earnings-per-share of $4.95 (11% increase)
• 2010 earnings-per-share of $4.94 (0.2% decline)

Becton Dickinson generated double-digit earnings growth in 2008 and 2009, during the worst years of the recession. It took a small step back in 2010, but continued to grow in the years since, along with the economic recovery.

The ability to consistently grow earnings each year of the Great Recession, which was arguably the worst economic downturn in decades, is extremely impressive.

Becton Dickinson also performed well during the worst of the COVID-19 pandemic as the company benefited from the increased demand for healthcare equipment.

The reason for its strong financial performance, is that health care patients need medical supplies. Patients cannot choose to forego necessary healthcare supplies. This keeps demand steady from year to year, regardless of the condition of the economy.

Becton Dickinson has a unique ability to withstand recessions, which explains its 52-year history of consecutive dividend increases. Becton Dickinson’s dividend is also very safe based on its fundamentals.

Valuation & Expected Returns

Using the midpoint for estimated earnings-per-share of $14.45 for the fiscal year 2025, the stock has a price-to-earnings ratio of 15.5x. Our fair value estimate for BDX stock is a P/E ratio of 19x, meaning shares appear undervalued. Multiple expansion to the fair value P/E could increase annual returns by 4.2% per year over the next five years.

But valuation isn’t the only factor in estimating total returns. BDX will also generate returns from earnings growth and dividends.

As far as dividends go, Becton Dickinson remains a quality dividend growth stock. It has a very secure payout and room for growth. Based on fiscal 2025 earnings guidance, Becton Dickinson will likely have a dividend payout of 29%.

This is a very low payout ratio. It leaves plenty of room for sustained dividend growth moving forward, particularly since earnings will continue to grow.

We project annual returns of 13.8% through fiscal year 2030, stemming from 8% earnings growth, the current dividend yield of 1.9%, and the 4.2% yearly boost from P/E expansion. The expected annual return earns the stock a buy recommendation.

Final Thoughts

Becton Dickinson’s business continues to perform very well. Given the positive growth outlook for the healthcare industry, we feel that Becton Dickinson has room for strong earnings growth.

In addition, Becton Dickinson is highly likely to increase its annual dividend for many years. Becton Dickinson is an attractive stock for dividend growth investors with expected total returns of nearly 14% per year and a safe and growing dividend.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

Updated on March 6th, 2025 by Nathan Parsh

PPG Industries (PPG) is one of the largest paint companies in the world. It is also one of the most reliable dividend stocks in the market—PPG has paid dividends every quarter since 1899.

Moreover, the company has increased its dividend each year for the last 53 years, which qualifies it for the exclusive Dividend Aristocrats list.

This is a group of 69 stocks in the S&P 500 Index that have had at least 25 consecutive years of dividend growth.

We consider the Dividend Aristocrats to be among the elite dividend-paying companies. With this in mind, we created a full list of all 69 Dividend Aristocrats.

You can download the entire Dividend Aristocrats list, with important financial metrics like dividend yields and P/E ratios, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

The stock is also on the exclusive list of Dividend Kings.

PPG’s remarkable dividend consistency gives it broad appeal to the more conservative members of the dividend growth investing community.

Indeed, the company’s strong business model ensures a very safe dividend payment and room for steady dividend increases each year. This is still very much the case today.

This article will analyze PPG’s investment prospects in detail and determine whether the company merits a buy recommendation at current prices.

Business Overview

PPG Industries was founded in 1883 as a glass manufacturer and distributor. The company’s name, Pittsburgh Plate Glass, refers to its original operations.

Over time, PPG has made remarkable strides to become a leader in the paints and coatings industry.

With annual revenues of about $16 billion, PPG’s only competitors of similar size are fellow Dividend Aristocrat Sherwin-Williams (SHW) and Dutch paint company Akzo Nobel (AKZOY).

Thanks to its worldwide operating presence and focus on technology and innovation, PPG Industries has grown to such an impressive size.

On January 31st, 2025, PPG Industries reported fourth-quarter and full year results for the period ending December 31st, 2024.

Source: Investor Presentation

For the quarter, revenue declined 4.6% to $3.73 billion, which was $241 million less than expected. Adjusted net income of $375 million, or $1.61 per share, compared to adjusted net income of $372 million, or $1.56 per share, in the prior year. Adjusted earnings-per-share was $0.02 below estimates.

For the year, revenue from continuing operations decreased 2% to $15.8 billion while adjusted earnings-per-share of $7.87 was up slightly from $7.67 in 2023.

Fourth-quarter organic revenue growth fell 2% as pricing was flat and volume was down 2%. Global Architectural Coatings’s revenue, formerly part of Performance Coatings, fell 7% to $881 million. Volume declined 2%, pricing was flat, and currency exchange reduced results by 5%.

Performance Coatings grew 2% to $1.26 billion as volume and pricing offset currency exchange. Aerospace demand remained high while protective and marine coatings were also up during the period.

The Industrial Coatings segment fell 9% to $1.59 billion due to weakness in U.S. and European industrial production.

PPG Industries repurchased ~$750 million of shares during 2024 and has $2.8 billion, or ~10.7% of its current market capitalization, remaining on its share repurchase authorization.

For 2025, the company expects organic sales to be higher by a low single-digit percentage and adjusted earnings-per-share in a range of $7.75 to $8.05. At the midpoint, this would represent a small improvement from 2024.

Growth Prospects

A company’s ability to increase revenues and profits is largely a function of its capital allocation.

In recent years, PPG has spent billions of dollars buying its next generation of growth. It tries to maintain a somewhat balanced capital allocation strategy, but it is also not afraid to spend big on acquisitions when opportunities present themselves.

PPG has spent much more of its deployed cash on share repurchases than its competitors, which has been a major source of earnings-per-share growth over time.

Acquisitions have been a key growth driver for PPG for many years. That growth has come at a cost, namely an increase in the company’s debt.

PPG is now virtually exclusively a coatings business. In recent years, the company has transformed away from legacy businesses like glass and chemicals, leaving it with a portfolio of coatings products that collectively generate nearly $16 billion in annual revenue. These businesses have largely seen improvements in margins in recent years.

Source: Investor Presentation

Its track record suggests that its underlying business is likely to continue growing at a satisfactory rate for the foreseeable future. In the past decade, the company has grown its earnings-per-share at an average rate of just under 5%, but this growth rate expands somewhat to 6.7% when looking at just the last five years.

Given its strong fundamentals and focus on coatings, we believe investors can reasonably expect 7% adjusted earnings-per-share growth from PPG Industries through full economic cycles.

However, PPG’s performance is likely to suffer during periods of economic recession. The good news is that we would likely see such an event as a buying opportunity for this high-quality business.

Competitive Advantages & Recession Performance

PPG enjoys several competitive advantages. It operates in the paints and coatings industry, which is economically attractive for several reasons. First, these products have high profit margins for manufacturers.

They also have low capital investment, which results in significant cash flow. As discussed above, PPG has used this significant cash flow over time.

Given all this, it makes sense that only two coatings companies (Sherwin-Williams and PPG Industries) are on the Dividend Aristocrats list.

That said, the paint and coatings industry is not recession-resistant because it depends on healthy housing and construction markets. This impact can be seen in PPG’s performance during the 2007-2009 financial crisis:

• 2007 adjusted earnings-per-share: $2.52
• 2008 adjusted earnings-per-share: $1.63 (35% decline)
• 2009 adjusted earnings-per-share: $1.02 (37% decline)
• 2010 adjusted earnings-per-share: $2.32 (127% increase)

PPG’s adjusted earnings-per-share fell by more than 50% during the last major recession and took two years to recover.

As PPG’s 2020 results showed, the decline in new construction is the dominant factor during a recession. The 2020 recession was no different, as PPG faced factory shutdowns and severely reduced consumer demand, although that proved to be transitory.

While this Dividend Aristocrat’s long-term prospects remain bright, investors should be willing to accept volatility in a recession.

Valuation & Expected Total Returns

We are forecasting earnings-per-share of $7.90 for the fiscal year of 2025, putting the price-to-earnings ratio at 14.6. This is below our fair value estimate of 19 times earnings, meaning PPG is undervalued today.

As such, we expect total returns from valuation expansion to increase by 5.5% annually over the next five years.

In total, we project that PPG will return 14.6% annually through 2030, stemming from 7% earnings growth and the starting yield of 2.4%, along with a 5.5% annualized return from an expanding P/E multiple.

Given this, we continue to rate PPG a buy.

Final Thoughts

PPG Industries has many of the characteristics of a very high-quality business. Its proven business model has allowed the company to weather any recession.

It also has a significant international presence and multiple catalysts for future growth. Lastly, it has increased its dividend for more than 50 years.

PPG’s dividend outlook is exemplary and we see many more years of dividend increases on the horizon. With expected annual returns approaching 15%, we rate PPG stock a buy.

If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 6th, 2025 by Nathan Parsh

The Dividend Aristocrats consist of companies that have raised their dividends for at least 25 years in a row. Over the decades, many of these companies have become huge multinational corporations, but not all of them.

You can see the full list of all 69 Dividend Aristocrats here.

We created a full list of all Dividend Aristocrats, along with important financial metrics like price-to-earnings ratios and dividend yields. You can download your copy of the Dividend Aristocrats list by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Dover Corporation (DOV) has raised its dividend for 69 consecutive years, one of the longest dividend growth streaks in the stock market.

The company has achieved such an exceptional dividend growth record thanks to its strong business model, resilience to recessions, and steady long-term growth.

There is room for continued dividend raises each year going forward, but on the other hand the stock appears to be overvalued right now.

Business Overview

Dover is a diversified global industrial manufacturer that offers its customers equipment and components, consumable supplies, aftermarket parts, software, and digital solutions.

It has annual revenues of nearly $8 billion, with just over half of its revenues generated in the U.S., and operates in five segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies.

On January 30th, 2025, Dover reported fourth-quarter and full-year results. Revenue grew 1% for the quarter to $1.93 billion, which was $20 million less than expected. Adjusted earnings-per-share of $2.20 compared unfavorably to $2.45 in the prior year, but this was $0.12 ahead of estimates. For the year, revenue improved 1% to $7.75 billion while adjusted earnings-per-share of $8.29 compared to $8.80 in 2023.

For the quarter, organic revenue declined 0.3% year-over-year, but bookings grew by 7%. Engineered Products had organic growth of 2% due to gains in vehicle aftermarket and fluid dispensing were offset by shipment timings in aerospace and defense.

Clean Energy & Fueling increased 8% due to higher shipments and new orders in clean energy. Volume improvements for aboveground retail fueling equipment also aided results.

Image & Identification was up 1% due to demand for core marking and coding printers, consumables, services, and aftermarket.

Revenue for Pumps and Process Solutions grew 3% due to higher demand for thermal connectors, precision components, and single-use biopharma components.

Climate & Sustainability Technologies was the company’s lone weak spot, as revenue fell 13%. U.S. CO2 systems reached a new record, but declines in European markets more than offset this strength. Bookings were up 16% for the quarter.

Overall, Dover enters 2025 with strong momentum in its business.

Source: Investor Presentation

Dover expects adjusted earnings-per-share in a range of $9.30 to $9.50 for 2025. At the midpoint, this would represent 13.4% growth from 2024. Organic revenue growth is  projected to be in a range of 3% to 5%.

Growth Prospects

Dover has pursued growth by expanding its customer base and through bolt-on acquisitions. To reshape its portfolio and maximize its long-term growth, Dover routinely executes a series of bolt-on acquisitions and occasional divestments.

The management team is constantly focused on delivering the most value to shareholders through portfolio transformation, which has generally been successful. The company’s prospects for 2025 also look strong in every aspect of its business.

Source: Investor Presentation

Today, the company is a highly diversified industrial company with an attractive growth profile. In addition, Dover is also likely to enhance its earnings per share via opportunistic share repurchases.

We see 8% long-term earnings-per-share growth in the years to come, driven primarily by revenue increases, with a boost from share repurchases reducing the float.

Competitive Advantages & Recession Performance

Dover is a manufacturer of industrial equipment. The company offers highly engineered products that are critical to its customers. Switching to another supplier is also uneconomic for its customers because the risk of lower performance is material.

Therefore, Dover essentially operates in niche markets, which offer the company a significant competitive advantage. This competitive advantage helps explain Dover’s consistent long-term growth trajectory.

On the other hand, Dover is vulnerable to recessions due to its reliance on industrial customers. In the Great Recession, its earnings per share were as follows:

• 2007 earnings-per-share of $3.22
• 2008 earnings-per-share of $3.67 (14% increase)
• 2009 earnings-per-share of $2.00 (45% decline)
• 2010 earnings-per-share of $3.48 (74% increase)

Dover got through the Great Recession with just one year of decline in its earnings per share, and the company almost fully recovered from the recession in 2010.

Given its sensitivity to economic cycles, it is impressive that Dover has grown its dividend for 69 consecutive years.

Another reason is management’s conservative dividend policy, which targets a payout ratio of around 30%. This policy provides a wide margin of safety during rough economic periods. The expected payout ratio for 2025 is just 22%.

Overall, Dover will undoubtedly continue to raise its dividend for many more years thanks to its low payout ratio, decent recessions resilience, and healthy balance sheet.

Valuation & Expected Returns

Dover is expected to generate earnings-per-share of $9.40 for 2025. That means the stock trades at 19.8 times this year’s earnings, which is higher than our estimate of fair value at 18 times earnings.

That implies a ~1.9% annual headwind to total returns from valuation compression over the next five years.

Including 8% expected annual earnings-per-share growth, the 1.1% current dividend yield, and a 1.9% annualized compression of the price-to-earnings ratio, we expect Dover to offer 6.9% average annual return over the next five years.

This puts Dover stock into the territory of a hold rating.

Final Thoughts

Dover has an impressive dividend growth record, with nearly seven decades of dividend raises. This is an impressive achievement, particularly given the company’s dependence on industrial customers, who tend to struggle during recessions.

Dover has consistently grown its earnings per share over the years, which has translated into annual dividend increases.

This strategy gives the company ample room to continue growing for many more years. The stock is slightly overpriced, meaning it earns a hold rating.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly: