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ADP stays strong with 51 years of dividend growth, undervalued shares, and steady organic growth.

Analyst Insights
08 Sep 2026
Seeking Alpha
View Source
Bullish
ADP stays strong with 51 years of dividend growth, undervalued shares, and steady organic growth.

Automatic Data Processing (ADP) continues to lead globally in human capital management, supported by organic growth, low unemployment, and rising client fund yields. The company boasts a 51-year streak of dividend growth, strong safety metrics, and low leverage, maintaining its status as a Dividend King and Aristocrat. Currently trading at about 22.7 times its projected 2027 earnings per share, ADP appears slightly undervalued compared to its historical average, with a fair value estimated at $294.24. The analyst maintains a 'buy' rating, citing ADP's resilient growth drivers and attractive dividend profile as reasons for confidence in its future performance.

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