This represents a compounded annual growth rate (CAGR) of 4.75%. ADP has one of the most reliable dividend payments in the market thanks to the company's high recurring revenue, strong client retention rates, low capital intensity, and mission-critical solutions. Trades at 29 times forward earnings while the S&P 500 trades at 18.5 times. Based on the current share price, the stock has a price-to-earnings ratio of 27.7. ADP Stock last raised its annual dividend by 15% on November 12th, 2019 to $3.64 per share. Since the 2008 financial crisis, the S&P 500 Dividend Aristocrat list has evolved as follows: . The number of employees on ADP clients’ payrolls continues to grow, and we believe this will continue for the foreseeable future. But ADP stock would be an attractive buy on any meaningful pullback in the share price, which would result in a lower valuation and higher dividend yield. Emerson Stock is a member of the prestigious S&P 500 Dividend Aristocrats. Free cash flow is calculated from the statement of cash flows, and is not artificially modified using accounting rules or non-cash expenses like depreciation, amortization, fair value revaluations, etc. The Dividend Aristocrats List and Index (2015) Now, you may be wondering which these companies actually are? Today, the company is one of the top cloud-based human capital management companies with 810,000 customers in 140 countries. Its most recent increase came in November 2019, when the company implemented another very strong 15% raise. The company expects new business bookings to increase 6%-8% in the current fiscal year, in addition to a slightly higher customer retention rate. That means ADP stock is an S&P 500 Dividend Aristocrat, which is an elite title reserved for S&P 500 companies with at least 25 consecutive years of annual dividend increases. ADP's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! The new quarterly dividend rate of $0.93 per share will be distributed on January 1, 2021 to shareholders of record on December 11, 2020. ADP – Automatic Data Processing T – AT&T. Click here to download your Dividend Aristocrats Excel Spreadsheet List now. 21 of the Dividend Aristocrats pay their dividends usually following the pattern: March, June, September, and December. The index is equally weighted, and rebalanced every quarter. dividends, but the amount has increased each year. ADP’s earnings-per-share during the Great Recession are shown below: ADP increased earnings-per-share in 2008 and 2009, which is a rare accomplishment. ADP’s Dividend and Stock Split History. This rise is at a compounded annual growth rate (CAGR) of almost 13% which is just spectacular! This helps insulate ADP from the effects of a recession. And, as the economy expands, companies are adding employees and increasingly use ADP’s services. ADP has raised its dividend each year for 45 years in a row. This gives it a wide economic “moat”, a term popularized by investing legend Warren Buffett. Multiplied by the number of times a year the company pays its dividend. A dividend aristocrat is a company that not only pays a dividend consistently but continuously increases the size of its payouts to shareholders. The Dividend Aristocrats is S&P500 list of stocks that have increased their dividend payouts for at least 25 consecutive years. I'm an employee of a company that uses ADP Forms W2, 1099, etc., Payroll, Passwords and more. Automatic Data Processing (ADP) is a dividend aristocrat that has increased its dividend for 41 straight years. Its most recent increase came in November 2019, when the company implemented another very strong 15% raise. There are many other reasons why my filtering start with dividend companies, see my post on why I chose dividend investing. The company’s excellent dividend growth track record is the result of its reliable business model. It is a list of companies with stable businesses that have competitive advantages and have returned cash to shareowners consistently through dividends. In addition, ADP benefits from a recession-resistant business model. ADP Is A Dividend Aristocrat. Within this list is a subset of companies known as Dividend Kings. Dividend.com: The #1 Source For Dividend Investing. Free Cash Flow = Cash from Operations – Capital Expenditures, Dividend Payout Ratio = Total Dividends Paid / Free Cash Flow. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. ADP is a business outsourcing services company. For full year 2019, ADP generated $14.2 billion in revenues and earned a net income of $2.3 billion, implying a 16.2% net profit margin. ... My ADP holding is quite small at only 0.18% of portfolio value. ADP offered up favorable guidance for this year, continuing many years of strong growth. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. The company recently reported fiscal 2020 first-quarter earnings, which was another terrific quarter. The strongest gains continue to accrue from the PEO Services segment, and we believe ADP will produce 8% earnings-per-share growth annually in the coming years. The good news is that the company is growing at a high enough rate that it could help justify something close its current valuation. ADP’s revenue per share and earnings per share increased each year from 2007 to 2009, throughout the recession. A Dividend Aristocrat is a company in the S&P 500 index that has paid increasing dividends for at least 25 years. Income investors favor Dividend Aristocrats because the companies are solid long-term holdings with predictable, safe, and growing dividend payments. Dividend.com: The #1 Source For Dividend Investing. Over the last decade, ADP Stock has gained 509% handily beating the performance of the S&P 500 which has gained 198%. ADP’s growth is fueled by many competitive advantages. Automatic Data has raised its dividend 44 consecutive years, making it a dividend aristocrat and putting it on track to become a dividend king in 2025. ADP stock is … Its most recent increase was on November 8 th, 2016, when the company announced a solid 7.5% raise.. ADP is a member of the Dividend Aristocrats, a group of 51 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. Its most recent increase was on November 8 th, 2016, when the company announced a solid 7.5% raise.. ADP is a member of the Dividend Aristocrats, a group of 51 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. Also to note, Sherwin-Williams’ second-quarter payment (June) sometimes pays at the end of May. However, a general market correction of 10% would present significant buying opportunities for long term investors. They are: Pillar #1: HCM Solutions provides cloud-based software helping employers of all sizes hire employees. For 2020, we had seven additions and no deletions. First, as the economy continues to grow at a modest rate, businesses are adding employees. We expect ADP to grow earnings-per-share by 8% annually over the next five years. Updated on November 22nd, 2019 by Josh Arnold. And, the company has continued to increase its dividend annually every year since. ADP has raised its dividend each year for 45 years in a row. Here is what we like and don’t like about Automatic Data Processing (ADP) Stock. ADP is a member of the S&P 500 Dividend Aristocrats index since it has raised its dividends for 45 years in a row, without missing a single year. 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