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Roper Industries(ROP - Get Report), one of TheStreet Ratings'
top-rated electrical equipment stocks, is a diversified manufacturer that operates in a wide array of businesses, including medical devices, energy control systems, and radio frequency products. While those businesses may be disparate, they do provide considerable exposure to the industrial sector, something investors should consider if they're concerned about cyclical stocks.
Historically, free cash flows have helped to fund Roper's acquisition strategy in a big way, resulting in a firm that has a manageable debt load and ample balance sheet liquidity, two factors that'll help shareholders' peace of mind on the next cycle downswing. A very large chunk of recurring revenues make this firm stand out even more from other manufacturing names -- even if its dividend payout doesn't.
While management increased its dividend by 25% on Wednesday, Roper's yield is just 0.66%. Despite the paltry payout, the fact that Roper uses its cash internally on growth is a good reason for longer-term investors to keep this stock in mind.
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