ADP On Pace to Become Dividend King in 2024 After 49 Years of Dividend Growth
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ADP has raised its dividend for 49 straight years and is on track to become a Dividend King in 2024 with 50 years of increases.
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It generates strong recurring revenue and cash flow, allowing it to pay out less than half its cash flow in dividends.
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With a $150 billion addressable market growing 5-6% annually, ADP still has plenty of room for continued revenue and earnings growth.
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Management forecasts 6-7% revenue growth and 10-12% EPS growth in fiscal 2024.
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With double-digit earnings growth ahead, ADP could continue increasing its above-average dividend yield at a 10%+ annual rate.