Why King Dover’s dividend is down almost 4% today.

One of the most regal of the stock market’s few dividend kings looked a little tarnished on Thursday. Shares Dover (PROV -3.60%) gained nearly 4% during the trading session following the release of the company’s latest set of quarterly results. This took place on the day that S&P500 the index closed in positive territory and the index increased by 0.2%.

Mixed third quarter

This morning, before the market opened, Dover reported third-quarter data that showed it had revenue of $1.98 billion, up 1% year-over-year. Non-GAAP (adjusted) net income rose more sharply, increasing 4% to $314 million ($2.27 per share).

According to analyst consensus estimates from Zacks’s, forecasters following the company’s stock expected slightly higher revenues of around $1.99 billion. However, they projected that Dover would post only $2.16 in adjusted net income per share.

Although revenue growth was not very strong, management was enthusiastic about the company’s performance. CEO Richard Tobin was quoted as saying that the solution “more than covered most of the range, rather than just offsetting short-term difficulties in polymer processing, beverage can production and heat exchangers for European heat pumps.”

Guidance lowered, but still a powerful company

Investors were likely more influenced by Dover’s revised full-year forecasts than the final results. The company lowered both revenue and profitability forecasts. He currently believes revenue will grow by 1-3% compared to 2023. He previously indicated an improvement of 3% and 4%.

The new GAAP net income forecast for this year is $10.11 to $10.21 per share, which translates to adjusted profitability of $8.08 to $8.18 per share. Previous estimates for the former were between $10.80 and $10.95.

These adjustments are somewhat discouraging, but Dover remains a strong presence in a wide variety of industrial product segments. It also sits near the top of the Dividend Kings list, having announced dividend increases for an incredible 68 years in a row.