2024-05-02 07:30:00 ET
Summary
- Automatic Data Processing stands out as the fifth-biggest position in my predominantly dividend growth stock-focused portfolio.
- The human capital management juggernaut built on its spectacular track record of topping analyst revenue and adjusted diluted EPS estimates in the fiscal third quarter.
- ADP's financial strength explains why it possesses an AA- credit rating from S&P.
- Shares in the industry leader could be priced 9% below fair value.
- ADP's combination of safe yield and strong growth prospects could translate into outsized total returns.
As a dividend growth investor, I don't hide the fact that I'm a big fan of Dividend Aristocrats. I own almost two dozen of these companies within my portfolio.
My rationale is quite simple. It takes a truly remarkable underlying business to grow into becoming an S&P 500 ( SP500 ) component with at least 25 consecutive years of dividend growth....
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For further details see:
Automatic Data Processing: Why I Love This Dividend Aristocrat