With more than four consecutive decades of dividend
increases, Automatic Data Processing (ADP) is one of my
favorite dividend aristocrats. The company’s excellent dividend growth
track record is the result of its reliable business model.
ADP benefits from providing mission-critical services,
generating a high percentage of recurring revenues, maintaining a strong client
retention rate, running asset-light operations, and throwing off loads of free
cash flow each year. Although ADP’s stock has nearly doubled the market’s
performance over the last decade, the company has plenty of room for continued
growth.
Not surprisingly, ADP scores extremely well for Dividend
Safety and Dividend Growth and is the type of business I like to own in
our Top 20 Dividend Stocks portfolio. Let’s take a closer look
at the business.
Continue to read at TalkMarkets
Comments
Post a Comment