A challenging year in the stock market has served as a good reminder that you want to hold some investments in companies with steady businesses. Dividend-paying companies can fit this bill because they must manage their capital well and have reliable cash flows.
Automatic Data Processing (NASDAQ: ADP) , better known as ADP, is one unstoppable dividend stock that performed well for years across economic cycles. The company has grown its annual dividend payout for decades, and the stock can help you beat the Dow Jones Industrial Average in the process. Here's why.
ADP is a business that investors often overlook because what it does is somewhat boring. Before diving into the business, consider this: ADP has grown its dividend payout for 48 consecutive years. Another two years of increasing dividends will put it in the exclusive group of stocks known as Dividend Kings . Aside from the consistent dividend growth, it has been an excellent source of stock price appreciation, with the stock returning investors 611% over the last two decades (when reinvesting dividends), beating the Dow Jones Industrial Average's total return of 431% in the same period.
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Beat the Dow Jones With This Unstoppable Dividend Stock