We came across a bullish thesis on Automatic Data Processing, Inc. on Compounding Dividends’s Substack by TJ Terwilliger. In this article, we will summarize the bulls’ thesis on ADP. Automatic Data Processing, Inc.'s share was trading at $214.47 as of February 20th. ADP’s trailing and forward P/E were 29.05 and 26.53, respectively according to Yahoo Finance. LPL Financial Holdings Inc. (LPLA) Delivers Growth and Analyst Support Automatic Data Processing, Inc. (ADP) is the undisputed leader in the global ...

Group 1: Conagra Brands - Conagra Brands has seen its stock price decline to around $19, trading at about 11 times forward earnings, which is considered a bargain compared to the S&P 500's nearly 22 times forward earnings [4] - The company has experienced a 50% loss in stock value over the past three years, with net sales declining by 6.8% in fiscal Q2 2026, partly due to the sale of non-core brands [3] - Conagra's dividend yield is currently at 7.3%, the highest in the S&P 500, despite a payout ratio approaching 80%, which is above its target of 50%-55% [4] Group 2: Kimberly Clark - Kimberly Clark's stock has lost about 25% of its value over the last three years, with sales down 2.1% last year primarily due to divestitures [5] - The stock is currently priced over $110 per share, trading at about 15 times earnings, which is cheaper than the broader market [6] - Kimberly Clark has a dividend yield of 4.3% and has extended its streak of dividend increases to 54 years, qualifying it as a Dividend King [6]

Shares of leading floor-care equipment and cleaning solutions provider Tennant Company (NYSE: TNC) are down 26% as of 1 p.m. ET on Tuesday after the company delivered lackluster fourth-quarter earnings. Sales, adjusted EBITDA, and adjusted earnings per share (EPS) sank 11%, 46%, and 68%, after Tennant's plant ERP transition in November disrupted operations. The company's Q4 sales of $292 million and adjusted EBITDA of $45 million were impacted by $30 million and $22 million, respectively, due to order-entr ...

The S&P 500 Has a New Dividend King. The Stock Looks a Lot Safer Than the Last One. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# The S&P 500 Has a New Dividend King. It Looks a Lot Safer Than the Last One.By [Ian Salisbury]ShareResize--- ...

February has been a strong month for Dividend Kings, with several companies once again showing they are serious about paying shareholders through higher dividends. Walmart (WMT) remains a top-rated pick for 2026, continuing to stand out among dividend-paying stocks. The backdrop is supportive as well, with the retail sector holding up and consumer spending driving 4.4% economic growth in the third quarter — the fastest pace in two years despite ongoing inflation worries. On Feb. 18, Walmart's board appro ...

Core Viewpoint - Johnson & Johnson is considered a stable investment option, providing steady income and strong total returns, making it a reliable choice for investors seeking long-term growth [1]. Group 1: Dividend Performance - Johnson & Johnson has raised its dividend for 63 consecutive years, qualifying it as a "Dividend King" [3]. - The company has achieved a total dividend increase of 73% over the past decade, with a recent quarterly payout increase of 4.8% to $1.30 per share, resulting in a yield of 2.1% [4]. - The payout ratio stands at 46.3%, indicating sufficient capacity for continued dividend increases, with $12.4 billion paid in dividends against $20 billion in free cash flow in 2025 [5]. Group 2: Financial Performance - Over the past year, Johnson & Johnson's total return exceeded 60%, significantly outpacing the S&P 500's return [7]. - The company reported a revenue increase of 6% to $94.2 billion and a remarkable 90.5% growth in earnings per share (EPS) to $11.03, with adjusted EPS rising by 8.1% to $10.79 [8]. Group 3: Future Growth and Innovation - Johnson & Johnson is investing $1 billion in a new cell manufacturing facility in Pennsylvania, aiming to enhance domestic production of advanced medicines [9]. - The company plans to allocate $55 billion towards U.S. manufacturing, research and development, and technology through early 2029 [10]. - In 2025, Johnson & Johnson invested $14.6 billion in R&D, leading to 28 programs generating over $1 billion in sales and 51 approved therapies in its innovative medicine division [11].

Core Insights - The Coca-Cola Company has approved a 3.9% increase in its quarterly dividend, raising it from 51 cents to 53 cents per share, marking the 64th consecutive annual dividend increase [2][9] - The new annualized dividend is $2.12 per share, up from $2.04 per share in 2025, providing a yield of approximately 2.7% based on current market prices [3][9] - The company returned $8.8 billion in dividends to shareholders in 2025, demonstrating its strong cash flow and commitment to shareholder returns [6][9] Leadership Changes - Todd Beiger has been elected as Vice President and Head of Investor Relations, effective March 31, 2026, succeeding Robin Halpern [4][9] - Beiger has 25 years of experience with the company and currently serves as Chief Financial Officer for Costa Limited, a part of Coca-Cola's European operations [5] - Henrique Braun is set to succeed James Quincey as CEO on March 31, 2026, with Quincey remaining as Executive Chairman to ensure a smooth transition [7]

Core Viewpoint - Altria Group is considered a strong buy-and-hold investment despite controversies surrounding its tobacco business, with a history of benefiting long-term investors [1]. Financial Performance - Altria shares have generated annualized returns of nearly 18% over the past five years, outperforming the S&P 500's annualized total returns of around 13% during the same period [2]. - The company has a market capitalization of $112 billion, with a current stock price of $66.54 and a dividend yield of 6.25% [3]. - Altria's total returns since February 2021 have reached 128.6%, significantly higher than the S&P 500's 85.8%, Coca-Cola's 81.7%, and Procter & Gamble's 41.6% [6]. Dividend Growth - Altria is classified as a "Dividend King," having over 50 years of consecutive dividend growth, with a forward dividend yield of 6.3% [5]. - The company has maintained steady earnings and dividend growth in the low single-digit range, primarily through price increases on smokeable products [10]. Market Position and Challenges - Altria generates approximately 88% of its total net revenue from smokeable products, lagging behind competitors like Philip Morris International, which derives around 41.5% of its revenue from smoke-free products [7][8]. - Past investments in smoke-free products, such as Juul Labs and Njoy, have resulted in significant impairment losses and legal challenges [9]. Future Outlook - Altria's modest earnings growth is expected to support its 6.3% dividend, positioning the company for solid returns in the future [11]. - The potential for valuation expansion exists, as Altria currently trades at 12 times forward earnings compared to Philip Morris International's 22 times [13]. - The company could enhance its nicotine pouch business through acquisitions, which may lead to stronger earnings growth and improved stock performance [12].

Core Insights - Walmart has achieved a market cap exceeding $1 trillion, marking a 510% increase over the past decade, with cumulative returns closer to 630% when accounting for dividend reinvestments since February 2016 [1][5] Group 1: Company Performance - Walmart's stock has surged over 28% in the past year and over 20% in 2026, significantly outperforming the S&P 500, which is up 12% in the same period [3] - For fiscal 2026 third quarter, Walmart reported a revenue growth of 5.8%, with e-commerce sales increasing by 27% and advertising revenue growing by 53% [5] - The company has guided for full-year sales growth between 4.8% and 5.1% [5] Group 2: Leadership and Strategy - New CEO John Furner, who took over on February 1, has been instrumental in driving growth through initiatives like curbside pickup and private-label expansion [6] - Walmart's inclusion in the Nasdaq 100 indicates a shift in perception, recognizing it as a technology-enabled business rather than just a traditional retailer [4] Group 3: Dividend and Financial Outlook - Walmart has a strong dividend history, having raised its dividend for 52 consecutive years, with a current quarterly dividend of $0.235 per share [7] - The annual dividend expense is approximately $7.5 billion, with a forecast of $14.6 billion for fiscal 2026, resulting in a payout ratio of 51% [7] - Analysts project free cash flow to expand to $24.8 billion by fiscal 2029, with the annual dividend per share potentially reaching $1.13 [8]

Core Viewpoint - Coca-Cola's stock is positioned for steady income, but new leadership may drive growth and innovation in the company [1] Leadership Changes - Chief Operating Officer Henrique Braun will become CEO on March 31, and a new Chief Digital Officer position has been created, held by Sedef Salıngan Şahin, to enhance the company's digital strategy [2][3] Brand Strength - Coca-Cola is one of the strongest global brands, with products that maintain customer loyalty across generations, providing a significant competitive advantage [4] Diversified Portfolio - The company offers a wide range of products beyond soda, including sports beverages, energy drinks, bottled water, coffee, and tea, which helps it adapt to changing consumer behaviors [5] Dividend Reliability - Coca-Cola is classified as a Dividend King, having paid dividends for over 50 consecutive years, currently distributing $0.51 per share quarterly, making it a reliable choice for income investors [6] Free Cash Flow - Strong free cash flow supports consistent dividends and allows for strategic acquisitions, enhancing shareholder value despite the company not being a high-growth entity [7] Defensive Stock Characteristics - Coca-Cola's stock exhibits lower volatility with a beta of 0.36, making it resilient during economic downturns, as evidenced by its long history [9] Total Return Potential - The company anticipates a growth rate of 4% to 5% for 2026, which, while modest, aligns with investor expectations for steady income and mid-single-digit growth, making it a foundational holding for long-term portfolios [10]