Automatic Data Processing Expects $21.8 Billion Revenue, Continues 51-Year Dividend Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: NASDAQ.COM
- Stable Revenue Source: Automatic Data Processing anticipates a revenue of $21.8 billion for the fiscal year, reflecting a 5.8% increase, which underscores its strong market position in payroll processing and tax reporting, enabling consistent dividends for shareholders.
- Dividend Growth Strength: The company has raised its per-share dividend for 51 consecutive years, with a forward-looking dividend yield of 2.6%, indicating its stable profitability and enhancing investor confidence in its long-term investment value.
- Walmart's Market Dominance: Walmart's stock price has surged 156% over the past three years, and while its current dividend yield is only 0.8%, its significant influence in the U.S. retail market and ongoing stock buyback programs create additional value for shareholders.
- Growth Potential in Water Sector: American States Water has increased its dividend for 70 consecutive years, with an average annual growth of over 8% in the past decade, and with rising water scarcity and electricity demand, its market performance is expected to continue outperforming the broader market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ADP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 216.270
Low
230.00
Averages
276.83
High
332.00
Current: 216.270
Low
230.00
Averages
276.83
High
332.00
About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ADP Report: Private Sector Adds 63,000 Jobs in February
- Job Growth Overview: According to the ADP report, the private sector added a seasonally adjusted 63,000 jobs in February, a significant improvement from the revised 11,000 in January and surpassing the Dow Jones estimate of 48,000, indicating resilience in the labor market.
- Sector Contribution Analysis: The education and health services sector led job creation with 58,000 new positions, while construction added 19,000, although most other sectors showed stagnant growth, highlighting the breadth issue in employment gains.
- Wage Growth Trends: Wage growth for job stayers remained steady at 4.5%, while the increase for job switchers fell to 6.3%, indicating that the incentive to change jobs has dropped to the lowest level since ADP began tracking this metric, potentially affecting future job mobility.
- Small Business Performance: Job gains were primarily concentrated in small businesses with fewer than 50 employees, which added 60,000 jobs, while large firms (500 or more employees) only added 10,000, reflecting the relative dynamism of small businesses in the current economic environment.
See More
February 2026 U.S. Private Sector Employment Report
- Significant Job Growth: In February 2026, the U.S. private sector added 63,000 jobs, marking the best employment growth since July 2025, particularly in construction and education and health services, indicating positive signs of economic recovery.
- Stable Wage Growth: Pay for job-stayers remained at a 4.5% year-over-year growth, while pay growth for job-changers slowed to 6.3%, reflecting that despite stable overall wage growth, the pay premium for switching jobs has hit a record low, potentially affecting employee mobility.
- Industry and Regional Variations: By industry, goods-producing sectors added 16,000 jobs, while service-providing sectors saw an increase of 47,000 jobs, with the South region experiencing the most significant growth at 37,000 jobs, highlighting differentiated economic performance across regions.
- Impact of Establishment Size: Small establishments contributed 60,000 new jobs, while medium establishments saw a decrease of 7,000 jobs, indicating that small businesses remain a primary driver of job growth in the current economic climate, reflecting the varying impacts of establishment size on the labor market.
See More
February Job Growth Surges with 63,000 New Positions
- Job Growth Surge: In February, companies added 63,000 workers, a significant increase from the downwardly revised 11,000 in January and surpassing the consensus estimate of 48,000, indicating a recovery in the labor market.
- Sector Concentration Issue: Job creation was heavily concentrated in education and health services, which added 58,000 positions, and construction, which contributed 19,000, while most other sectors experienced stagnation or declines, highlighting a lack of breadth in employment growth.
- Wage Growth Trends: Pay for job stayers grew by 4.5%, unchanged from January, while wage gains for job switchers fell to 6.3%, indicating a reduced incentive for changing jobs to the lowest level since ADP began tracking this metric, potentially affecting future labor mobility.
- Small Business Dominance: The majority of new jobs came from small businesses with fewer than 50 employees, which added 60,000 positions, while large firms added only 10,000, demonstrating the resilience of small enterprises in the current economic climate.
See More
U.S. Employment Growth and Wage Increase in February
- Significant Job Growth: In February 2026, the U.S. private sector added 63,000 jobs, marking the best hiring performance since July 2025, particularly in construction and education/health services, indicating a strong economic recovery momentum.
- Stable Wage Growth: Pay for job-stayers remained at a 4.5% annual increase, while job-changers saw a decline to 6.3%, suggesting that despite increased hiring, wage competitiveness has weakened, potentially affecting employee mobility.
- Industry Performance Variance: Among the new jobs, the service sector contributed 47,000 positions, with notable growth in education and health services, while manufacturing lost 5,000 jobs, highlighting structural changes across industries.
- Regional Employment Disparities: The South added 37,000 jobs, becoming the primary driver of growth, while the Midwest saw a decrease of 4,000 jobs, reflecting uneven economic recovery across regions, which may influence policymakers' decisions.
See More
High Dividend Stocks Favored Amid Market Turbulence
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess strong free cash flows and reward shareholders with substantial dividend payouts.
- Analyst Ratings: The most accurate analyst ratings highlight Korn Ferry (NYSE: KFY), Automatic Data Processing Inc (NASDAQ: ADP), and Pitney Bowes Inc (NYSE: PBI) as representative high-yield stocks in the industrials sector, indicating their appeal in the current market environment.
- Market Trend: The increasing popularity of high dividend stocks reflects a trend among investors seeking stable returns amid economic uncertainty, particularly as economic fluctuations intensify.
- Cash Flow Advantage: These companies maintain high dividend payments due to their robust free cash flows, further enhancing their perceived value among investors, especially during periods of economic instability.
See More
Four Boring Dividend Stocks for Long-Term Income
- Procter & Gamble's Edge: Procter & Gamble (PG) holds approximately 40% of the U.S. laundry detergent market and nearly 50% of the diaper market, leveraging scale and market dominance to maintain low per-unit production costs and high pricing power, ensuring stable cash flow and dividend payments.
- Brookfield Asset Management: Brookfield Asset Management (BAM) focuses on industries with long-term growth potential, including infrastructure and renewable energy, with a projected revenue and dividend growth target of 15%-20%, appealing to income-seeking investors.
- Automatic Data Processing's Resilience: Automatic Data Processing (ADP) is more than just a payroll processor, offering services like employee attendance and benefits management; despite AI challenges, its 51-year streak of dividend increases demonstrates its business resilience and sustainability.
- Coca-Cola's Stability: Coca-Cola (KO) has raised its per-share dividend for 64 consecutive years, relying on a strong brand portfolio and outsourcing bottling operations to reduce cost risks, allowing it to focus on brand marketing and continue providing stable income for investors.
See More
ADP Report: Private Sector Adds 63,000 Jobs in February
- Job Growth Overview: According to the ADP report, the private sector added a seasonally adjusted 63,000 jobs in February, a significant improvement from the revised 11,000 in January and surpassing the Dow Jones estimate of 48,000, indicating resilience in the labor market.
- Sector Contribution Analysis: The education and health services sector led job creation with 58,000 new positions, while construction added 19,000, although most other sectors showed stagnant growth, highlighting the breadth issue in employment gains.
- Wage Growth Trends: Wage growth for job stayers remained steady at 4.5%, while the increase for job switchers fell to 6.3%, indicating that the incentive to change jobs has dropped to the lowest level since ADP began tracking this metric, potentially affecting future job mobility.
- Small Business Performance: Job gains were primarily concentrated in small businesses with fewer than 50 employees, which added 60,000 jobs, while large firms (500 or more employees) only added 10,000, reflecting the relative dynamism of small businesses in the current economic environment.
See More
February 2026 U.S. Private Sector Employment Report
- Significant Job Growth: In February 2026, the U.S. private sector added 63,000 jobs, marking the best employment growth since July 2025, particularly in construction and education and health services, indicating positive signs of economic recovery.
- Stable Wage Growth: Pay for job-stayers remained at a 4.5% year-over-year growth, while pay growth for job-changers slowed to 6.3%, reflecting that despite stable overall wage growth, the pay premium for switching jobs has hit a record low, potentially affecting employee mobility.
- Industry and Regional Variations: By industry, goods-producing sectors added 16,000 jobs, while service-providing sectors saw an increase of 47,000 jobs, with the South region experiencing the most significant growth at 37,000 jobs, highlighting differentiated economic performance across regions.
- Impact of Establishment Size: Small establishments contributed 60,000 new jobs, while medium establishments saw a decrease of 7,000 jobs, indicating that small businesses remain a primary driver of job growth in the current economic climate, reflecting the varying impacts of establishment size on the labor market.
See More
February Job Growth Surges with 63,000 New Positions
- Job Growth Surge: In February, companies added 63,000 workers, a significant increase from the downwardly revised 11,000 in January and surpassing the consensus estimate of 48,000, indicating a recovery in the labor market.
- Sector Concentration Issue: Job creation was heavily concentrated in education and health services, which added 58,000 positions, and construction, which contributed 19,000, while most other sectors experienced stagnation or declines, highlighting a lack of breadth in employment growth.
- Wage Growth Trends: Pay for job stayers grew by 4.5%, unchanged from January, while wage gains for job switchers fell to 6.3%, indicating a reduced incentive for changing jobs to the lowest level since ADP began tracking this metric, potentially affecting future labor mobility.
- Small Business Dominance: The majority of new jobs came from small businesses with fewer than 50 employees, which added 60,000 positions, while large firms added only 10,000, demonstrating the resilience of small enterprises in the current economic climate.
See More
U.S. Employment Growth and Wage Increase in February
- Significant Job Growth: In February 2026, the U.S. private sector added 63,000 jobs, marking the best hiring performance since July 2025, particularly in construction and education/health services, indicating a strong economic recovery momentum.
- Stable Wage Growth: Pay for job-stayers remained at a 4.5% annual increase, while job-changers saw a decline to 6.3%, suggesting that despite increased hiring, wage competitiveness has weakened, potentially affecting employee mobility.
- Industry Performance Variance: Among the new jobs, the service sector contributed 47,000 positions, with notable growth in education and health services, while manufacturing lost 5,000 jobs, highlighting structural changes across industries.
- Regional Employment Disparities: The South added 37,000 jobs, becoming the primary driver of growth, while the Midwest saw a decrease of 4,000 jobs, reflecting uneven economic recovery across regions, which may influence policymakers' decisions.
See More
High Dividend Stocks Favored Amid Market Turbulence
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess strong free cash flows and reward shareholders with substantial dividend payouts.
- Analyst Ratings: The most accurate analyst ratings highlight Korn Ferry (NYSE: KFY), Automatic Data Processing Inc (NASDAQ: ADP), and Pitney Bowes Inc (NYSE: PBI) as representative high-yield stocks in the industrials sector, indicating their appeal in the current market environment.
- Market Trend: The increasing popularity of high dividend stocks reflects a trend among investors seeking stable returns amid economic uncertainty, particularly as economic fluctuations intensify.
- Cash Flow Advantage: These companies maintain high dividend payments due to their robust free cash flows, further enhancing their perceived value among investors, especially during periods of economic instability.
See More
Four Boring Dividend Stocks for Long-Term Income
- Procter & Gamble's Edge: Procter & Gamble (PG) holds approximately 40% of the U.S. laundry detergent market and nearly 50% of the diaper market, leveraging scale and market dominance to maintain low per-unit production costs and high pricing power, ensuring stable cash flow and dividend payments.
- Brookfield Asset Management: Brookfield Asset Management (BAM) focuses on industries with long-term growth potential, including infrastructure and renewable energy, with a projected revenue and dividend growth target of 15%-20%, appealing to income-seeking investors.
- Automatic Data Processing's Resilience: Automatic Data Processing (ADP) is more than just a payroll processor, offering services like employee attendance and benefits management; despite AI challenges, its 51-year streak of dividend increases demonstrates its business resilience and sustainability.
- Coca-Cola's Stability: Coca-Cola (KO) has raised its per-share dividend for 64 consecutive years, relying on a strong brand portfolio and outsourcing bottling operations to reduce cost risks, allowing it to focus on brand marketing and continue providing stable income for investors.
See More
