Is Automatic Data Processing A Safe Dividend Stock? Yes, But It's Too Pricey

Summary

  • Automatic Data Processing is a leading HR outsourcing company with a solid growth outlook.
  • The company has a strong market position and is a quality pick with reliable business and dividend growth.
  • ADP is expensive, however. I do thus believe that buying today is not the best idea. Waiting for a more advantageous entry price should pay off.
  • Looking for a helping hand in the market? Members of Cash Flow Kingdom get exclusive ideas and guidance to navigate any climate. Learn More »
ADP Büro außen. Automatic Data Processing Inc.is ein amerikanischer Anbieter von Personalmanagement-Software und -Dienstleistungen - Pleasanton, Kalifornien, USA - 2020

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Article Thesis

In this report, we'll show that Automatic Data Processing, Inc. (NASDAQ:ADP) is a safe and reliable dividend payer that will most likely continue to raise its dividend going forward. That alone doesn't make the stock a buy, however. Automatic Data

Is This an Income Stream Which Induces Fear?

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This article was written by

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Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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