Unlocking the Key to Passive Income with Automatic Data Processing (NASDAQ: ADP)
Sustainable competitive advantage
Stability is a prerequisite for unstoppable dividend stocks, and Automatic Data Processing (NASDAQ: ADP) is a model of stability with plenty of data to support that fact. The company is among the leaders in the payroll and human capital management software industries. It has customers in 140 countries, with more than 1 million clients. That diverse exposure means that ADP isn't tied to the well-being of any one customer, industry, or nation.
Its financial success
High ROIC and net profit margin, along with impressive stewardship, contribute to ADP's efficient operations and strong cash flow generation, crucial for maintaining a healthy dividend. This, paired with reliable cash flow growth, underpins the company's impressive stability and ability to continue paying dividends in the future.
The data backs up the story
ADP has delivered stable growth across revenue, net income, and free cash flow, with 49 consecutive years of dividend growth. Investors can expect reliable compounding gains and future income boost by reinvesting the decent forward dividend yield offered by ADP into their portfolios.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.