Attention Retirees: This 51-Year Dividend Aristocrat Is Secretly Riding a Multi-Billion Dollar Cash Wave Quick Read – ADP stock fell 25% over the past year, yet its dividend jumped 10.4% to $6.80 annually, extending a 51-consecutive-year streak of increases. – CFO Peter Hadley…
affirmed ADP’s dividend commitment alongside $1.46 billion in year-to-date buybacks, signaling capital return remains central to company strategy. – ADP’s 54% FCF payout ratio and 1.9x cash flow coverage rank it among the safest dividend setups in large-cap tech. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and ADP didn’t make the cut. Grab the names FREE today
If you are building a retirement income portfolio, Automatic Data Processing (NASDAQ:ADP) is one of the few payroll-fueled cash machines worth a hard look right now. The stock is down 25.24% over the past year, but the dividend engine underneath has only gotten stronger. The question I want to answer: is this payout actually as bulletproof as the 51-year streak suggests?
Dividend at a Glance Payout Ratios Leave Plenty of Headroom ADP earned $10.72 in TTM EPS against a $6.48 trailing dividend, which puts the earnings payout at roughly 60%. On cash, FY2025 operating cash flow of $4.94 billion minus $168.7 million of CapEx leaves about $4.77 billion of free cash flow against roughly $2.59 billion in dividends paid. A Balance Sheet Built on Float ADP holds $3.23 billion in cash, equity of $6.35 billion, and a Beta of just 0.845.