Roper Technologies, Inc. (ROP) increased its dividend by 18% on December 18th. In doing so, it has now raised its dividend payout for 25 years, and as a result has become one of the newest members of the Dividend Aristocrats.

The Dividend Aristocrats are a select group of 53 stocks in the S&P 500, with 25+ years of consecutive dividend increases.

In order to become a Dividend Aristocrat, a company needs a strong business model, durable competitive advantages, and the ability to withstand global recessions. Clearly, the Dividend Aristocrats are high-quality dividend growth stocks. Making the list is no small accomplishment for Roper.

Even more appealing is Roper’s high dividend growth rate. Even among the Dividend Aristocrats, dividend hikes of 10%+ are rare, which makes Roper’s 18% dividend increase even more impressive.

This article will discuss Roper’s business, growth potential, and valuation.

Business Overview

Roper designs and develops software, including both software-as-a-service and licensed technology, and engineered products and solutions. Roper has a diverse portfolio of products and services, which it provides to a multitude of sectors, including healthcare, transportation, food, energy, water, and education.

Roper focuses on four main business segments:

The core RF Technology business provides radio frequency identification—or RFID—communication technology, software, and information solutions. This is a booming technology, that has a variety of uses, including toll and traffic systems, security and access control, campus card systems, card readers, and more.

The Medical & Scientific Imaging segment offers products and software used in medical applications, and high-performance digital imaging. Industrial Technology includes water and fluid handling pumps, leak testing equipment, flow measurement and metering equipment, and water meter products. Lastly, the Energy Systems & Controls segment produces control systems, testing equipment, industrial valves and controls, and inspection and measurement products.