As is the case with life, there are no guarantees in dividend investing. The dividend payer of today could cut or suspend its dividend tomorrow - or even go bankrupt. For my money, owning a well-diversified portfolio of provenHi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to TipRanks, Sure Dividend, and The Dividend Kings and iREIT+Hoya Capital. I have been investing since September 2017 and interested in dividend investing since about 2009.Since July 2018 ...

These companies have delivered 50 or more years of dividend increases. Many companies have either had to stop increasing their dividends or, worse yet, cut or suspend their payouts because of financial troubles over the years. That makes those with unbroken streaks of growing their payouts all the more impressive. A tiny percentage of public companies have multidecade streaks of increasing their dividends. A little more than 50 companies have delivered 50 or more years of dividend growth. Dubbed Dividend Ki ...

A study by Harford Funds shows that companies that raise their dividends outperform those that don't, with significantly less volatility.The stock market is a great way to build long-term wealth. With countless approaches available, navigating the world of investing can feel overwhelming.But one method that stands out is buying shares of dividend-paying companies, which -- over lengthy periods -- have consistently outperformed peers that don't pay dividends.A study by Hartford Funds showed that, over a 50-y ...

Revenue and Earnings Growth - Revenue growth of 7% to $4,832.7 million for the three months ended September 30, 2024, with 7% organic constant currency growth[95] - Earnings before income taxes margin expanded by 140 bps, and adjusted EBIT margin expanded by 130 bps[95] - Diluted and adjusted diluted earnings per share ("EPS") growth of 13% to $2.34 and 12% to $2.33, respectively[95] - Net earnings increased by 11% to $956.3 million for the three months ended September 30, 2024, compared to $859.4 million in the same period last year[125] - Adjusted EBIT increased by 13% to $1,232.5 million for the three months ended September 30, 2024, with an adjusted EBIT margin of 25.5%[125] Cash Flow and Liquidity - Cash returned via shareholder-friendly actions of $940M, including $570M of dividends and $370M of share repurchases[95] - Cash and cash equivalents stood at $2.1 billion as of September 30, 2024, primarily invested in time deposits and money market funds[129] - The company has $10.3 billion of committed credit facilities and expects sufficient liquidity to meet operating, investing, and financing activities for the foreseeable future[130] - Operating cash flow increased to $824.4 million in September 2024, up from $326.5 million in September 2023, driven by favorable working capital changes and business growth[133] - Net cash flows provided by operating activities increased to $824.4 million in 2024, up from $326.5 million in 2023, driven by favorable changes in working capital and business growth[133] - Net cash flows used in investing activities changed significantly to $(1,644.4) million in 2024, primarily due to timing of purchases and proceeds of corporate and client funds marketable securities of $1,426.7 million[134] - Net cash flows used in financing activities increased to $(6,491.5) million in 2024, largely due to a net decrease in cash flow from client funds obligations of $9,495.6 million[135] - The company repurchased 1.4 million shares at an average price of $259.47 per share in September 2024, compared to 1.0 million shares at $242.26 per share in September 2023[136] - The company repurchased 1.4 million shares of common stock at an average price of $259.47 per share in Q3 2024, compared to 1.0 million shares at $242.26 per share in Q3 2023[136] - The company maintains $10.3 billion in committed credit facilities, with no borrowings through September 30, 2024[140] Employer Services Performance - Employer Services revenue increased by 7% to $3,261.0 million for the three months ended September 30, 2024, driven by new business bookings, strong client retention, and a 2% increase in pays per control[113][115] - Employer Services' earnings before income taxes increased by 15% to $1,164.3 million for the three months ended September 30, 2024, driven by client funds interest revenues and operating efficiencies[114][116] - Employer Services' margin increased by 260 basis points to 35.7% for the three months ended September 30, 2024, due to client funds interest revenues and reduced research and development costs[115][116] PEO Services Performance - PEO Services revenue increased by 7% to $1,574.5 million for the three months ended September 30, 2024, due to a 3% increase in average worksite employees and higher zero-margin benefits pass-throughs[117] - PEO Services' earnings before income taxes increased by 1% to $225.6 million for the three months ended September 30, 2024, partially offset by higher selling expenses and zero-margin benefits pass-through costs[114][118] - PEO Services' margin decreased by 80 basis points to 14.3% for the three months ended September 30, 2024, due to higher zero-margin benefits pass-through costs and workers' compensation expenses[115][119] Interest and Investment Performance - Interest on funds held for clients increased to $253.3 million, up from $201.7 million in the same period last year, driven by a higher average interest rate of 3.1% and a 5.3% increase in average client funds balances to $32.8 billion[99] - Interest expense increased by 50% to $137.8 million due to higher average commercial paper borrowings of $4.8 billion and reverse repurchase borrowings of $3.8 billion[104] - Average daily commercial paper borrowings were $4.8 billion in September 2024, with a weighted average interest rate of 5.3%[139] - The company has $7.3 billion available under U.S. reverse repurchase agreements, with $679.1 million outstanding as of September 2024[139] - Total average investment balances increased to $43,456.8 million in September 2024, up from $38,258.4 million in September 2023[150] - The annualized interest rate earned on the investment portfolio increased to 3.2% in September 2024, up from 2.6% in September 2023[150] - A 25 basis point change in short-term interest rates could impact earnings before taxes by approximately $7 million over the next 12 months[150] - Corporate investments increased to $10,669.8 million in September 2024 from $7,129.0 million in September 2023, a 49.6% increase[150] - Funds held for clients grew to $32,787.0 million in September 2024 from $31,129.4 million in September 2023, a 5.3% increase[150] - Total average investment balances rose to $43,456.8 million in September 2024 from $38,258.4 million in September 2023, a 13.6% increase[150] - Average interest rates earned on corporate investments increased to 3.4% in September 2024 from 2.6% in September 2023[150] - Average interest rates earned on funds held for clients increased to 3.1% in September 2024 from 2.6% in September 2023[150] - Total average interest rates earned increased to 3.2% in September 2024 from 2.6% in September 2023[150] - Net unrealized pre-tax losses on available-for-sale securities decreased to $651.2 million in September 2024 from $1,515.8 million in June 2024[150] - Total available-for-sale securities at fair value increased to $33,673.1 million in September 2024 from $31,207.5 million in June 2024[150] - A hypothetical 25 basis points change in short-term and intermediate-term interest rates could result in a $15 million impact to earnings before income taxes over the next twelve months[150] - The company limits credit risk by investing primarily in AAA-rated and AA-rated securities[151] Capital Expenditures and Share Repurchases - Capital expenditures for September 2024 were $55.6 million, with fiscal 2025 expectations between $200 million and $225 million[142] - Capital expenditures for Q3 2024 were $55.6 million, with fiscal 2025 expectations between $200 million and $225 million[142] Debt and Borrowings - The company has $4.0 billion of senior unsecured notes with maturity dates in 2025, 2028, 2030, and 2034[137] - The company's U.S. commercial paper program allows for issuance of up to $10.3 billion, with $4.4 billion outstanding as of September 30, 2024[138] - Average daily borrowings under the commercial paper program were $4.8 billion in Q3 2024, with a weighted average interest rate of 5.3%[139] - The company has $7.3 billion available on a committed basis under U.S. reverse repurchase agreements, with $679.1 million outstanding as of September 30, 2024[139] Acquisitions and Investments - Acquired WorkForce Software for approximately $1.2 billion in cash[95] - Research and development expenses decreased by 2% to $232.6 million due to workforce optimization and increased capitalizable spend related to GenAI integration[101]

Core Insights - The 2025 HCM Distinction Awards finalists have been announced, recognizing large employers excelling in human capital management and workplace innovation [1][2][3] - The awards celebrate organizations that leverage HCM technology to enhance organizational agility, foster inclusive cultures, and improve employee experiences [2][3] Award Categories and Finalists - **Agility at Work Award Finalists**: Capstone Logistics, RSG Group (Gold's Gym), Virgin Hotels Las Vegas [5] - **Culture at Work Award Finalists**: BrightPath Early Learning and Child Care, Café Rio, Thrive Restaurant Group [5] - **Global Solutions at Work Award Finalists**: Bristol-Myers Squibb, ServiceNow, Stanley Black & Decker [5] - **Innovation at Work Award Finalists**: Genpak, Goodwill of the Olympics and Rainier Region, Tillys [5] - **Talent at Work Award Finalists**: Academy Bank, Charter Schools USA, Trulite Glass & Aluminum Solutions [5] Event Details - Winners will be announced at the ADP Meeting of the Minds conference scheduled for March 18-21, 2025, in Las Vegas, Nevada [4] - The conference has been a platform for sharing inspiration and expertise for 40 years, featuring educational sessions and networking opportunities [4]

These dividend stocks can be excellent options for buy-and-hold investors.A dividend growth stock can be an extremely valuable investment to hold in your portfolio as it can be a source of recurring income. As the company raises its dividend, that increase can more than offset the effects of inflation, resulting in even more income down the road. This gives you an incentive to buy and hold for a good long while.Three stocks that routinely raise their dividend payments and could be due for another round of i ...

Automatic Data Processing, Inc. (ADP) has reported impressive first-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.ADP’s earnings per share of $2.3 beat the consensus estimate by 5.9% and increased 12% from the year-ago quarter. Total revenues of $4.8 billion beat the consensus estimate by 1.5% and grew 7.1% on a year-over-year basis.The ADP stock has gained 25.7% year to date, outperforming th ...

Economic & Earnings CommentaryJobs Week continues this morning, further articulating one half of the Fed’s mandate in determining future interest rate cuts. Pre-market futures haven’t changed much in the minutes following the release, which are mixed right now: the Dow -63 points at this hour, the S&P 500 +3 and the Nasdaq +20 (coming off its first all-time closing high since July).This morning’s jobs figures follow yesterday’s JOLTS numbers — which came in lower-than-expected at 7.44 million open positions ...

Financial Data and Key Metrics - Revenue growth of 7% in Q1 2025, with adjusted EBIT margin expansion of 130 basis points and adjusted EPS growth of 12% [6] - Employer Services (ES) segment revenue increased 7% on both a reported and organic constant currency basis, exceeding expectations [24] - PEO revenue growth of 7% and average worksite employee growth of 3% in Q1, both exceeding expectations [10][30] - Client funds interest revenue increased more than anticipated in Q1, driven by stronger average client funds balance growth [27] - Full-year adjusted EBIT margin expansion forecast increased to 30 to 50 basis points, with adjusted EPS growth expected to be 7% to 9% [34] Business Line Performance - Employer Services new business bookings reached a record volume for Q1, with broad-based strength across small business, mid-market, and HR Outsourcing segments [7][8] - ES retention rate slightly declined but still exceeded expectations, with client satisfaction scores reaching an all-time high [9] - PEO new business bookings growth offset modest deceleration in PEO pays per control growth, leading to strong PEO performance [10][31] - ES pays per control growth of 2% met expectations, with full-year growth forecasted at 1% to 2% [26] Market Performance - International business maintained strong momentum from the previous year, contributing to overall HCM demand stability [8] - ES margin increased by 260 basis points in Q1, driven by operating leverage and client funds interest revenue growth [29] - PEO margin decreased by 80 basis points in Q1, primarily due to higher workers' compensation program costs and zero-margin benefits pass-through revenue growth [32] Strategic Direction and Industry Competition - The acquisition of WorkForce Software strengthens ADP's Workforce Management Solutions, particularly for large global enterprises [12][13] - Introduction of ADP Lyric, a next-gen HCM platform, aims to meet the evolving needs of the modern workforce with integrated Generative AI technology [15][16] - Continued investment in Generative AI capabilities to enhance client experience and associate productivity [18][19] - Focus on three strategic priorities: leading with best-in-class HCM technology, providing unmatched expertise in outsourcing, and leveraging global scale [22] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to advance strategic goals and deliver strong financial results [22] - The acquisition of WorkForce Software is expected to pressure adjusted EBIT margin in the short term but is seen as a strategic growth opportunity [33] - Management highlighted the importance of client satisfaction and retention, with record NPS scores driving favorable retention results [46][62] Other Important Information - ADP issued $1 billion in 10-year notes in September, increasing corporate interest expense by approximately $40 million for fiscal 2025 [34] - The company expects a full-year effective tax rate of around 23% [34] Q&A Session Summary Question: Demand and bookings backdrop for Employer Services [36] - Demand for HCM remained steady, with strong performance in Retirement Services, mid-market HR Outsourcing, and International segments [37] Question: PEO retention and pays per control growth [38] - PEO retention contributed modestly to outperformance, with new business bookings being the primary driver [38] - PEO pays per control growth is expected to be slower than ES pays per control growth [40] Question: Financial profile of WorkForce Software [41] - WorkForce Software is expected to contribute to ES revenue growth, with modest pressure on EBIT margin and EPS due to integration costs and amortization [43] Question: Client satisfaction drivers [45] - Record client satisfaction scores were driven by investments in product and service tools, particularly in the mid-market and HR Outsourcing segments [46][47] Question: Integration plan for WorkForce Software [48] - The integration plan focuses on leveraging WorkForce Software's capabilities in the global enterprise market, with potential synergies with ADP Lyric [49] Question: PEO bookings outperformance [51] - Strong PEO bookings were attributed to intense focus on execution and the value proposition of PEO offerings, particularly in health benefits and workers' compensation [52] Question: Cross-sell opportunities with WorkForce Software [68] - Cross-sell opportunities are seen as a key growth driver, with potential to leverage ADP's scale and distribution to expand WorkForce Software's client base [68] Question: Generative AI investments [70] - ADP continues to invest modestly in Generative AI, with tools like call summarization and virtual knowledge assist showing positive results [70] Question: Small business health and out-of-business rates [72] - Small business health remains strong, with out-of-business rates almost normalized to pre-pandemic levels [72] Question: Pricing strategies [78] - Pricing strategy remains consistent, with expected price increases of around 100 basis points for the year [78] Question: WorkForce Software revenue contribution [88] - The revenue contribution from WorkForce Software is expected to grow, but it is too early to quantify the exact impact [89] Question: Lyric's impact on financials [92] - Lyric is still in early stages, with strong pipeline growth but limited immediate financial impact [93] Question: PEO pays per control growth [95] - PEO pays per control growth is expected to continue, albeit at a slower pace than ES pays per control growth [95] Question: Employer Services bookings growth [96] - ES bookings growth is expected to remain within the 4% to 7% range, driven by strong demand and execution [96]

Wednesday, October 30, 2024Jobs Week continues this morning, further articulating one half of the Fed’s mandate in determining future interest rate cuts. Pre-market futures haven’t changed much in the minutes following the release, which are mixed right now: the Dow -63 points at this hour, the S&P 500 +3 and the Nasdaq +20 (coming off its first all-time closing high since July).This morning’s jobs figures follow yesterday’s JOLTS numbers — which came in lower-than-expected at 7.44 million open positions fo ...