Automatic Data Processing (ADP) has maintained a robust dividend payout for 51 consecutive years, recently increasing it by 10.4% for 2026. Despite a 25.24% decline in stock price over the past year, ADP's dividend yield stands at 2.87%, supported by a healthy payout ratio of around 60% of earnings and strong free cash flow coverage. The company benefits from a strong balance sheet with minimal debt and significant client fund balances generating growing interest income. Management emphasizes continued dividend growth and capital returns, making ADP a very safe and attractive income investment as long as client retention and pays-per-control growth remain stable.
The SCHD ETF has delivered a nearly 3% return over the past month, outperforming the S&P 500 ETF (SPY), which returned about 1.75%. Year-to-date, 18 SCHD holdings have more than doubled the returns of SPY, which has returned approximately 10.3%. Addi...
For the four weeks ending May 30, 2026, U.S. private employers added an average of 25,500 jobs per week, according to the ADP National Employment Report Pulse. This marks a slowdown in employment growth for the fourth consecutive week, down from a pe...
FerdiS presents his monthly ranking of dividend growth stocks, highlighting the top 10 picks for June 2026. These stocks are selected based on a quality assessment and must have at least 15% upside potential and an Adjusted Chowder Number above 12.0....
Automatic Data Processing (ADP) is a strong long-term investment due to its essential payroll services, high client retention, and consistent dividend growth. The company benefits from high switching costs and generates significant interest income fr...
