Rollins

ROL

Market cap $21.1B

Rollins offers a resilient, recession-proof business with consistent revenue, strong pricing power, and high recurring demand for pest control services. Despite a 31% stock decline, ROL's fundamentals remain robust, driven by recurring service plans and disciplined acquisition-led growth. Current concerns include CFO resignation, margin compression from inflation, and elevated acquisition costs due to higher interest rates.

I define dividend growth stocks as those with dividend increases of 5 or more consecutive years. In this monthly series, I rank a selection of dividend growth stocks and present the top 10 stocks for consideration. This month, I'm presenting the top 10 dividend growth stocks with a 5-year yield-on-cost of 2.5% or higher and a consensus upside of at least 5%.

Each stock is an industry leader in its niche, and all three trade at once-in-a-decade valuations. They may not be as exciting as uber-popular tech stocks, but they are less likely to be disrupted.

ROL drives growth with technology, acquisitions and strong segment demand. Its rising costs and margin pressure remain key risks.

ATLANTA, July 8, 2026 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today announced that it will release its second quarter results for the period ended June 30, 2026, after the market closes on Wednesday, July 22, 2026. In conjunction with its release, the Company will host a conference call to review the Company's financial and operating results before the market opens on Thursday, July 23, 2026, at 8:30 a.m.

I track a curated universe of 50 high-quality dividend growth stocks to identify opportune entry points based on valuation and future return potential. Year-to-date through June, the investable universe returned 8.69%, trailing SPY (10.10%) and SCHD (17.50%), but several individual stocks outperformed significantly. Currently, 39 out of 50 stocks offer a forward return estimate of at least 10%, with 22 appearing potentially undervalued by my free cash flow model.

Newcomers like Tampa and Myrtle Beach reinforce importance of pest preparedness ahead of busy travel season ATLANTA, July 7, 2026 /PRNewswire/ -- As summer travel ramps up, Orkin's 2026 Bed Bug Cities List highlights several destinations experiencing increased bed bug activity, including the addition of high-growth vacation destinations Tampa and Myrtle Beach. Chicago retained its position as the nation's city with the highest rate of bed bug infestations, with Los Angeles, Detroit, Cleveland and Indianapolis rounding out the top five.

Rollins is upgraded to Buy after a ~30% price decline, offering a compelling valuation for a proven long-term compounder. Q1 results showed 10.2% revenue growth and 9.1% higher Adj. EPS, with strong organic and M&A-driven expansion across business segments. ROL's defensiveness remains intact, but macro uncertainty, CFO turnover, and higher rates introduce near-term risks and potential volatility.

"Insect 2151" Challenges Teens to Reimagine the Future Through Insect-Inspired Innovation, Offering $180,000 in Scholarships and Inspiring the Next Generation of Innovators ATLANTA, June 16, 2026 /PRNewswire/ -- As Orkin marks 125 years of helping people better understand and manage pests, the company is launching the Orkin Insect 2151 Science Fair. The national virtual competition challenges students ages 14-18 to explore entomology and imagine how insect-inspired ideas could help solve real-world challenges over the next 125 years.

I track a curated universe of 50 high-quality dividend growth stocks to identify attractive entry points based on valuation and forward return potential. Year-to-date, the universe lags SPY and SCHD, but select names like LRCX (+343%) and KLAC (+208%) have dramatically outperformed since inception. Currently, 40 stocks offer forward return estimates of at least 10%, with 24 appearing potentially undervalued by my free cash flow model.