Mesut Dogan/iStock Editorial via Getty Images As a dividend growth investor, the overwhelming majority of the stocks I own in my portfolio are those with long histories of paying dividends. The reason for this is that companies with multiple decades of dividend growth have proven business models that work throughout all portions of the economic cycle. These companies must be highly profitable to be able to regularly grow the dividend. Automatic Data Processing (NASDAQ:ADP) is one such company as it has rais ...

Many dividend investors focus too much on a stock's current dividend yield. That can shortchange their returns.That's clear from the total returns generated by dividend stocks over the last half-century. While dividend payers have produced a 9.2% average annual return, according to data from Ned Davis Research and Hartford Funds, there's a huge disparity. Dividend growers and initiators have produced a 10.2% average annual total return, while companies with no change in their dividend policy have only deliv ...

JHVEPhoto My objective with this thesis is to highlight Automatic Data Processing's (NASDAQ:ADP) diversification strategy together with its ability to consistently hike dividends as positives for the stock going into 2024. On top, it has AI potential too, and trades at around $232 which is below its December 2022 high of $269.9 by over $36 as per the chart below. The price performance covers a three-year time horizon including 2022, when the Federal Reserve hiked interest rates at an unprecedentedly aggress ...

ADP (ADP 0.19%) is an elite dividend stock. The leading payroll and human capital management (HCM) solutions provider raised its payout for the 49th straight year in 2023. This year should be its 50th year of dividend growth, which would put it into the noble class of Dividend Kings.What's even more impressive about ADP is that it hasn't been making a habit of giving investors paltry annual raises to keep its streak alive. For example, it raised its payment by 12% last year. Add in its above-average dividen ...

Automatic Data Processing Inc. (NASDAQ:ADP) Company Conference Call December 5, 2023 8:00 AM ET Company Participants Maria Black - Chief Executive Officer Don McGuire - Chief Financial Officer Conference Call Participants James Faucette - Morgan Stanley James Faucette All right, good afternoon everybody. Thanks for joining us here for ADP. As a reminder, I’m James Faucette, Senior Research Analyst here at Morgan Stanley. I’m very pleased to have Maria Black, CEO of ADP. Thanks for joining us-- Maria Black ...

Summary of Automatic Data Processing, Inc. (ADP) Conference Call Company Overview - **Company**: Automatic Data Processing, Inc. (NASDAQ: ADP) - **Event**: J.P. Morgan Ultimate Services Investor Conference - **Date**: November 16, 2023 Key Industry Insights - **Macro Environment**: The macroeconomic factors affecting ADP's business have become more nuanced compared to previous quarters. While some metrics remain positive, others are showing signs of deceleration [3][4][6]. - **Bankruptcy Rates**: Currently below pre-pandemic levels, which is beneficial for ADP [3]. - **New Business Formation**: Remains healthy, contributing positively to ADP's growth [3]. - **Wage Inflation**: Still above pre-pandemic levels but showing signs of slowing down, providing a mixed impact on the business [3]. - **Employment Growth**: Year-on-year growth in "pays per control" is at 2%, which is below the historical norm of 2% to 3%, indicating a slight drag on overall performance [4]. - **GDP Impact**: GDP growth is seen as a proxy for demand, with expectations leaning towards a softer trend rather than stronger growth [5][6]. Company Performance and Strategy - **Client Segmentation**: - **Small Businesses**: Experiencing strong growth due to favorable cyclical factors and high client satisfaction [13][14]. - **Mid-Market**: More mature segment with growth driven by upselling existing clients rather than acquiring new ones [14][15]. - **Enterprise Space**: Stable but not a major growth driver currently due to ongoing platform transitions [15][16]. - **Global Market**: Growth varies by region, with modern platforms showing better performance compared to older ones [17]. Financial Outlook - **PEO Business**: Although historically a fast-growing segment, it is currently more exposed to cyclical employment growth factors, leading to a cautious outlook [19][20]. - **Midterm Growth Rates**: The company remains optimistic about growth opportunities despite short-term cyclical headwinds [24][25]. - **Operational Expenses**: ADP plans to continue investing in sales and marketing to maintain client satisfaction and drive growth, even in a slowing economy [43][44]. Competitive Landscape - **Market Dynamics**: The mid-market is experiencing consolidation, with several competitors vying for a shrinking pool of clients. ADP's diverse revenue base allows it to mitigate risks associated with high market concentration [27][28][29]. - **SaaS Threat**: The competitive landscape remains stable, with no significant changes in threats from SaaS competitors [26][30]. Product Development - **Platform Improvements**: ADP is focused on consolidating platforms and enhancing product offerings to improve client experience [33][34]. - **Integration of Gen AI**: The company is actively integrating generative AI into its products to enhance user engagement and streamline operations [35][36]. Additional Insights - **Vertical Solutions**: ADP has rolled out specific solutions for certain verticals, such as construction, but does not plan to fully verticalize its offerings [47][48]. - **Cultural Continuity**: Leadership changes have not significantly altered the company culture, with a continued focus on product consolidation and innovation [50]. This summary encapsulates the key points discussed during the conference call, highlighting the current state of ADP, its market position, and future outlook.

Automatic Data Processing, Inc. (NASDAQ:ADP) TD Cowen Human Capital Management Summit Conference Call November 13, 2023 12:00 PM ET Company Participants Jim Sperduto - President, Small Business Solutions Conference Call Participants Bryan Bergin - TD Cowen Jared Levine - TD Cowen Bryan Bergin Alright. Thank you. Good morning or good afternoon, and welcome to TD Cowen HCM Summit. I’m Bryan Bergin, I am joined by my colleague, Jared Levine. And we are very excited to have you and be with ADP. Really needs no ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q ______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 1-5397 __________________________ AUTOMATIC DATA PROCESSING, INC. (Exact name of registrant as specified in i ...

Automatic Data Processing, Inc. (NASDAQ:ADP) Q1 2024 Earnings Conference Call October 25, 2023 8:30 AM ET Company Participants Danyal Hussain - VP, IR Maria Black - President & CEO Don McGuire - CFO Conference Call Participants Samad Samana - Jefferies Bryan Bergin - TD Cowen James Faucette - Morgan Stanley Bryan Keane - Deutsche Bank Ramsey El-Assal - Barclays Jason Kupferberg - Bank of America Tien-Tsin Huang - JPMorgan David Togut - Evercore ISI Mark Marcon - Baird Scott Wurtzel - Wolfe Research Operator ...

Copyright © 2023 ADP, Inc. ADP Earnings Call & Webcast Q1 Fiscal 2024 October 25, 2023 Forward Looking Statements This document and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "outlook," "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could," "is de ...