Roper Technologies: Don't Overlook This Small Yield
Roper Technologies (ROP) was built on acquiring industrial products and equipment; however, they've since begun employing a software roll-up strategy. When done right, the roll-up strategy can generate excellent returns for investors.
Roper Technologies is a business that I had often overlooked as a potential addition to my portfolio due to its low dividend yield, albeit fantastic dividend growth. I was admittedly missing the forest for the trees when examining Roper with respect to my portfolio construction.
Last week, Roper Technologies announced a 10% increase to their quarterly payout extending their streak of 10% raises to 17. I wanted to take a deeper look at Roper to see if the valuation makes sense as a potential purchase candidate.
My approach to dividend growth investing revolves around a mix of low yield and high growth businesses, medium yield and medium growth, as well as high yield and low growth businesses. I believe a mix of those should be a part of most investors' portfolios since growth is what will fuel the future dividends, of course, I also like my dividends now.