Dover Corporation

Methodology

Dover's diversified industrial equipment portfolio generates relatively stable earnings across end markets including pumps, refrigeration, and industrial automation. The conglomerate structure provides cyclical diversification though exposure to industrial production cycles remains significant. Fair value calculations work reasonably well when accounting for mid-single-digit earnings growth from operational improvements and strategic portfolio management.

Methodology

Dover typically trades at PEG ratios between 1.0-1.8x, reflecting solid but unspectacular growth from diversified industrial end markets. The company's margin expansion initiatives and capital allocation discipline support modest premium valuations. PEG works effectively given consistent execution, though growth potential remains constrained by mature industrial markets.

Methodology

Dover pays a dividend yielding 1-2% with aristocrat growth credentials, making PEGY somewhat more attractive than PEG for this steady industrial. The company balances dividends with strategic acquisitions and share buybacks. Total return benefits from reliable dividend growth component that complements modest earnings compounding in mature industrial equipment markets.