Monday, June 24, 2024

Recent buy (ADP)

On 24 June I bought 8 shares of ADP for about $ 250 a share. These shares will deliver an annual dividend income of $45. This purchase will strengthen the technology segment of my portfolio.

Automatic Data Processing (ADP) is a leading global provider of human capital management solutions. It was founded in 1949, and has a long history of paying dividends. ADP offers a wide range of services, including payroll, talent management, tax and benefits administration, and human resource outsourcing. The company serves over 860,000 clients across various industries.

ADP is recognized for its strong dividend characteristics. The company has consistently increased its dividend payout for almost 50 years. The 10-year dividend growth rate is 11% and shorter streaks show even higher dividend growth rates. This shows that the company is confident in its ability to boost earnings. The dividend yield is somewhat on the low side (2,2%) but its payout ratio and earnings forecast gives the company room to grow the dividend. ADP has a healthy balance sheet with a 40% debt-to-capital ratio, and a 40% return on equity.

No comments:

Post a Comment