Introduction
Roper Technologies Inc. (NYSE:ROP) has been the best-performing Dividend Aristocrat over the last couple of decades. However, Roper is not your typical dividend growth stock. In fact, in many ways I believe the company is better thought of as a growth stock. Nevertheless, growth is a great asset to possess in every investor’s toolbox. Thanks to the power of compounding, it’s hard to lose money over the long run when investing in a consistent above-average grower. Roper Technologies Inc. is a classic example.
In the FAST Graphs Analyze Out Loud video below, I will provide a by-the-numbers look at Roper Technologies' fundamentals. My objective will be to clearly illustrate where and how its performance has been generated. Although this is not a household name, it’s a very interesting company that turns most of its operating cash flow into free cash flow, thereby providing it a consistent engine for growth.
Measuring Performance Without Simultaneously Measuring Valuation Is A Job Half Done
Dividend Aristocrats are typically thought of as superior dividend income generators. However, many of them also have outperformed the S&P 500 on a capital appreciation basis as well. Since the beginning of 1999, approximately 75% of the Dividend Aristocrats have outperformed the market over the long run solely on a capital appreciation basis. However, 100% of the Dividend Aristocrats have outperformed the S&P 500 on a total dividend income paid basis over that time frame. Therefore, it should be obvious that high-quality, blue-chip dividend-paying stocks tend to be better than average long-term investments.
Moreover, from a total return perspective, there are numerous Dividend Aristocrats that have produced double-digit total returns since 1999, while the S&P 500 only averaged a 6% annualized total return. However, Roper Technologies Inc. has outperformed all others by a significant margin. On the other hand, this best-performing Dividend Aristocrat also offers the lowest current
