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These 2 Under-the-Radar Dividend Kings Just Declared Dividend Raises
The Motley Fool· 2025-11-30 18:05
Core Insights - The article highlights two lesser-known companies, Automatic Data Processing (ADP) and Marzetti, which are notable for their consistent dividend increases, making them attractive to income investors [1][2]. Group 1: Automatic Data Processing (ADP) - ADP has recently celebrated its status as a Dividend King, having increased its quarterly dividend by 10% to $1.70 per share, marking 51 consecutive years of dividend hikes [3][6]. - The company operates in the finance sector, providing payroll and human resources services, and has maintained a stable profit margin between 17% and 20% over the last five fiscal years [4][5]. - For the first quarter of fiscal 2026, ADP reported a 7% year-over-year revenue increase to $5.2 billion and a 6% rise in GAAP net income to $1 billion, indicating sustained profitability [6][5]. - The upcoming dividend payout will be distributed on January 1, 2026, yielding 2.7% based on the most recent stock price [7]. Group 2: Marzetti - Marzetti, a food products supplier, has also increased its dividend for the 63rd consecutive year, raising it by 5% to $1 per share [9]. - The company reported a nearly 6% rise in net sales to over $493 million for the first quarter of 2026, with significant growth in its food service segment, which saw an 8% increase [10][12]. - Marzetti's business model includes a balanced approach between its food service and retail segments, allowing it to mitigate risks associated with fluctuations in consumer spending [13]. - The raised dividend will be paid on December 31 to stockholders of record as of December 5, yielding approximately 2.4% based on the current share price [14].