Automatic Data Processing (ADP) Offers Strong Dividend Yield Amid Market Trends
ADP’s Dividend Yield Exceeds 2% as Investors Weigh Historical Returns
Looking at the stocks tracked by Dividend Channel, shares of Automatic Data Processing Inc. (Symbol: ADP) offered a dividend yield of over 2% in Friday’s trading session. The stock dipped to a low of $306.72 for the day, with an annualized dividend of $6.16. Investors often consider dividends carefully, as they have historically contributed significantly to stock market returns.
For perspective, if you purchased shares of the S&P 500 ETF (SPY) on December 31, 1999, at $146.88 each, by December 31, 2012, the value per share had decreased to $142.41, a drop of $4.67. However, over that same period, investors would have received $25.98 per share in dividends. This led to a positive total return of 23.36%. It’s worth noting that when dividends are reinvested, the average annual total return stands at just 1.6%. Therefore, a consistent yield above 2% from ADP could be quite appealing to investors.
Automatic Data Processing Inc. is a member of the S&P 500, establishing it as a prominent player among large-cap companies within the index.
Dividend amounts can be unpredictable and generally fluctuate based on a company’s profitability. To assess the likelihood of ADP maintaining its current dividend, examining the historical dividend chart for ADP below can provide valuable insights.
ADP has consistently raised its dividend for over 20 years. For more information on other stocks with strong dividend growth, check our Dividend Aristocrats List on Dividend Channel.
Click here to discover which 9 other dividend stocks recently went on sale »
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
