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Roper (ROP) Rewards Shareholders With 10% Dividend Hike

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In a shareholder-friendly move, Roper Technologies (ROP - Free Report) has raised its quarterly dividend by 10% to 75 cents per share (annually: $3). The move underscores the company’s sound financial health as it utilizes free cash flow to enhance shareholders’ returns.

The new dividend will be paid to shareholders on Jan 23, 2024, of record as of Jan 9, 2024. The dividend yield, based on the new payout and its Nov 9 closing price, is 0.6%. This marks ROP’s 31st consecutive annual dividend hike.

Strong cash flow generation capacity supports Roper’s shareholder-friendly activities. In the third quarter of 2023, the company generated a free cash flow of $625 million, up 77% year over year. ROP’s Frontline business delivered most of its free cash flow in the third quarter.


In the first nine months of 2023, ROP rewarded its shareholders with a dividend payment of $118.7 million, up 11.1% year over year. In November 2022, the company hiked its dividend by 10% to 68.25 cents per share.

Roper has been benefiting from strength across the Deltek, Vertafore, Strata, Frontline (acquired in October 2022) and Aderant businesses within the Application Software segment. Expansion initiatives have bolstered the company’s growth. In August, the company acquired cloud-based performance management and data solutions provider, Syntellis Performance Solutions, for $1.25 billion. The acquired entity will be integrated into Roper’s Strata Decision Technology business, which is part of the Application Software segment. Syntellis is expected to contribute approximately $185 million and $85 million to Roper’s revenues and EBITDA in 2024, including planned cost synergies. Acquisitions boosted ROP’s sales by 9% in the third quarter.

Zacks Rank & Other Stocks to Consider

Roper presently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks within the Computer and Technology sector are as follows:

Vertiv (VRT - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 27.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Vertiv has an estimated earnings growth rate of 224.5% and 27.9% for 2023 and 2024, respectively. Shares of the company have surged more than 100% in the year-to-date period.

CyberArk Software (CYBR - Free Report) presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 60.3%, on average.

CyberArk has an estimated earnings growth rate of 279.6% and 105.1% for 2023 and 2024, respectively. Shares of the company have gained 40.3% in the year-to-date period.


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