Automatic Data Processing (ADP): Why We JUST Bought More Of One of the Highest-Quality Stocks

►‌ ‌Mike's‌ ‌"Growth‌ ‌&‌ ‌Income"‌ ‌Portfolio:‌ ‌

When I first selected Automatic Data Processing (ADP) for our Income Builder Portfolio back in August 2020, the global COVID-19 pandemic was wreaking havoc on the economy.

ADP management was concerned about “pressures” on the company, and the forecast was for earnings to suffer a year-over-year decline for the first time in more than a decade.

I picked ADP anyway because of its exceptional history as a global provider of human capital management and business outsourcing services, and because I was confident it would weather the pandemic better than most.

And as a Dividend Growth Investing proponent, I appreciated ADP’s decades-long streak of consecutive annual dividend increases.

As it turns out, Automatic Data has navigated the unique challenges presented by the pandemic even better than its own management team expected. Revenues, earnings before interest and taxes (EBIT), and earnings per share (EPS) actually increased from 2020 to 2021.

Taking note of those metrics and other strong fundamentals, investors drove up the price.

As a result, our ADP position has been one of the Income Builder Portfolio’s top performers. With a 49% total return since we bought it on Aug. 4, 2020, it has handily beaten the S&P 500 Index.

To see why we just bought more, check out the video.

FOLLOW US:

#DividendStock #HighYield #HighQuality $ADP

LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Mike is not a licensed financial advisor, tax professional, or stockbroker and he does not purport to be. Links above may include affiliate commissions paid to the owners of Dividends and Income and help support this channel.

[DividendsandIncome]

Want an email alert the next time Mike makes a purchase for his Growth & Income Portfolio or our Income Builder Portfolio?

[markbell]

I've been following this stock for years... sadly, it's always been a bit above my price point for investing... price vs dividend return.
I view ADP as an excellent choice for those folks who have a long term horizon and wish to invest in a value stock... Plus, they were my
client at one time and I can tell you, they had excellent folks in the day.

Mark Bell

[walnutinvesting]

I love the way this stock sounds as a dividend growth company but 2 things that turn me off is it's high pe which I can get over and also is it able to keep up with the times with its technology and software