Today, Dover Corp. (DOV) announced it was increasing its 3rd quarter dividend by 4%. The new quarterly dividend increases to 26 cents per share versus 25 cents per share in the same period last year. The estimated payout ratio on the new dividend increases to 57% based on 2009 estimated earnings per share of $1.80. The 2010 EPS estimate is $2.11 resulting in a payout ratio of 49% on this longer term earnings estimate. This compares to the 5-year historical payout ratio of 26%. The Dover Corporation stock is one of Standard & Poor's Dividend Aristocrats and carries an S&P Earnings & Dividend Quality Ranking of A-.
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