Meet the Little-Known, S&P 500 Dividend Stock That Has Rocketed 3,740% Higher Since 2000

Core Viewpoint - Roper Technologies has achieved remarkable total returns of approximately 3,740% since 2000, significantly outperforming the S&P 500, making it one of the most successful stocks in the index [1][2] Company Overview - Roper operates a diversified portfolio of around 28 independent businesses, focusing on acquiring and growing niche, market-leading technology companies [2][4] - The company has transitioned from industrial applications to technology-first solutions, with 75% of its sales now derived from vertical software solutions [5][6] Financial Performance - Roper has consistently raised its dividend payments for 27 consecutive years, increasing quarterly payouts 36-fold during this period [2] - The company reported a 14% revenue growth and a 16% increase in free cash flow (FCF) in the fourth quarter, despite integrating two recent acquisitions valued at $3.6 billion [9] - Roper has grown its FCF by an impressive 22% annually over the last decade, which is crucial for funding its acquisition strategy [8] Business Segments - Roper's business segments include: - Application Software (56% of sales): Serves markets like healthcare, education, and government contracting, with Deltek being a significant player [7] - Network Software (20% of sales): Focuses on construction data, food supply chains, and freight matching, with subsidiaries forming North America's largest freight spot market [7] - Technology-Enabled Products (24% of sales): Provides solutions for water and medical industries, with Neptune Technology Group being a key business line [7] Dividend Growth - Roper has increased its dividend payments by 20% annually over the last decade, utilizing only 14% of its FCF for these payments, indicating strong potential for future increases [10] - The company’s dividend yield is currently 0.5%, but long-term investors have seen substantial rewards, with a 19% annual dividend payment compared to their original cost basis [11] Investment Outlook - Roper Technologies is positioned as a premium business trading at a fair price, with a focus on high-margin verticals and a strong acquisition strategy, making it a stock to watch for potential investment [12]