The New Tech Dividend King Poised for Explosive Growth

• ADP has present accrued its dividend for 51 consecutive years, placing it successful uncommon company.

• The tech institution is pairing sticky payroll gross with a quality superior absorption bundle push.

• Management expects full-year fiscal 2026 net per stock maturation to beryllium faster than it was successful fiscal Q1.

• 10 stocks we similar amended than Automatic Data Processing ›

Payroll is not a flashy business. But it is simply a mission-critical 1 (not to notation a bully opposition to the galore hyped-up artificial intelligence-names that person go marketplace darlings successful 2025). And that is wherefore Automatic Data Processing (NASDAQ: ADP) has been capable to softly compound for decades portion paying shareholders much each year, turning it into a Dividend King that each capitalist looking to bolster their portfolio with a increasing watercourse of income should consider.

ADP sits successful the mediate of a recurring, compliance-heavy workflow that companies cannot spend to get wrong, making switching costs high. In different words, erstwhile it comes to payroll, employers thin to similar a trusted level erstwhile it is successful place. And arsenic a person successful payroll, ADP is simply a go-to solution for galore companies. That creates the benignant of durability that supports a agelong dividend streak.

Here's a person look astatine ADP's maturation story, including its awesome dividend way record.

In mid-November, ADP's committee approved a dividend summation that marked the company's 51st consecutive twelvemonth of dividend increases. The institution lifted its quarterly dividend by $0.16 per stock to $1.70, translating to astir a 10% increase.

A way grounds of 51 consecutive increases puts ADP successful the uncommon institution of Dividend Kings, defined arsenic companies that person raised their dividends for astatine slightest 50 consecutive years. Highlighting the unsocial durability of its business, ADP is the lone exertion institution that has made it into the coveted list.

The crushed ADP tin bash this comes down to what it sells. Payroll and quality superior absorption (HCM), which are ADP's halfway offerings, interaction each employee, each wage period. Sure, a recession tin dilatory hiring, and a anemic labour marketplace tin unit volumes. But the enactment itself inactive has to happen, and frankincense payroll is ever necessary.

That resilience showed up again (like clockwork) successful ADP's archetypal 4th of fiscal 2026. Revenue roseate 7% twelvemonth implicit twelvemonth to $5.2 billion, and adjusted net per stock accrued 7% to $2.49. Interest connected funds held for clients roseate 13% to $287 million.

For astir investors, the default mode to deliberation astir ADP is arsenic a dependable payroll processor. That framing is not wrong, but it is incomplete. There are respective levers ADP is pulling to accelerate its income growth. Specifically, the institution is trying to grow wrong its lawsuit basal -- and to triumph caller customers done channels that did not beryllium a decennary ago.