The law of large numbers tells us that business growth tends to slow down as a company becomes larger in size.
Accordingly, it is rare for large businesses to grow their revenues at double-digit percent rates.
Dover Corporation (DOV) is an exception to this rule. Dover has a market capitalization of ~$13 billion, firmly entrenching it in the universe of large cap S&P 500 stocks.
Despite its size, Dover is growing at a rapid rate. The company’s recent second quarter earnings release reported 18% revenue growth, and the company increased its full-year revenue growth guidance to 12%-14%.
Dover stands out because it is an exceptionally shareholder-friendly business. With 61 years of consecutive dividend increases, Dover is a Dividend Aristocrat and a Dividend King, which are groups of stocks with 25+ and 50+ years of consecutive dividend increases (respectively).
Dover’s strong recent financial performance combined with its spectacular dividend history make it appealing to dividend growth investors.
This article will analyze the recent financial performance and investment prospects of Dover in detail.
Business Overview & Current Events
Dover is a diversified industrial manufacturer with a market capitalization of approximately $13 billion.
Founded in 1955 in New York City, Dover is presently headquartered in Downers Grove, Illinois and has more than 26,000 employees.
Dover is divided into four distinct operating segments for reporting purposes:
More details about each operating segment can be seen below.
Source: Dover Corporation Mid-Year Investor Presentation, slide 6
As mentioned in the introduction, Dover recently reported excellent financial results for the second quarter of fiscal 2017.
Here are a few operational highlights:
Additional details about Dover’s second quarter can be seen below.
Source: Dover Corporation Second Quarter Earnings Presentation, slide 3
