Definitive Analysis
Definitive Analysis

Financial Statements

Fundamentals

Valuations

Miscellaneous

Analysis Mode

Full Access

See Pricing Start Trial

Automatic Data Processing, Inc. (ADP)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$237.81 - $630.84$363.63
Multi-Stage$169.42 - $184.74$176.94
Blended Fair Value$270.29
Current Price$293.50
Upside-7.91%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS10.28%9.97%5.885.354.674.073.863.603.172.612.442.31
YoY Growth--9.89%14.68%14.74%5.30%7.14%13.73%21.56%6.88%5.47%1.72%
Dividend Yield--2.00%1.93%1.94%1.80%1.93%2.58%1.96%1.73%2.23%2.62%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,136.30
(-) Cash Dividends Paid (M)2,453.00
(=) Cash Retained (M)1,683.30
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)827.26517.04310.22
Cash Retained (M)1,683.301,683.301,683.30
(-) Cash Required (M)-827.26-517.04-310.22
(=) Excess Retained (M)856.041,166.261,373.08
(/) Shares Outstanding (M)408.01408.01408.01
(=) Excess Retained per Share2.102.863.37
LTM Dividend per Share6.016.016.01
(+) Excess Retained per Share2.102.863.37
(=) Adjusted Dividend8.118.879.38
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$237.81$363.63$630.84
Upside / Downside-18.98%23.90%114.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,136.304,405.164,691.494,996.445,321.215,667.095,837.10
Payout Ratio59.30%65.44%71.58%77.72%83.86%90.00%92.50%
Projected Dividends (M)2,453.002,882.883,358.293,883.324,462.415,100.385,399.32

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,617.662,642.472,667.28
Year 2 PV (M)2,768.792,821.532,874.77
Year 3 PV (M)2,907.112,990.563,075.60
Year 4 PV (M)3,033.293,149.943,269.93
Year 5 PV (M)3,147.993,300.043,457.90
PV of Terminal Value (M)54,648.9657,288.5360,029.12
Equity Value (M)69,123.8072,193.0775,374.59
Shares Outstanding (M)408.01408.01408.01
Fair Value$169.42$176.94$184.74
Upside / Downside-42.28%-39.71%-37.06%

High-Yield Dividend Screener

« Prev Page 16 of 30 Next »
Ticker Company Dividend Yield % Dividend Per Share Payout Ratio %
HWBKHawthorn Bancshares, Inc.2.27%$0.7724.18%
UTMDUtah Medical Products, Inc.2.27%$1.2835.35%
DKSDICK'S Sporting Goods, Inc.2.26%$4.5238.61%
EMLThe Eastern Company2.26%$0.4437.05%
SBCFSeacoast Banking Corporation of Florida2.26%$0.7143.09%
WMKWeis Markets, Inc.2.26%$1.4535.88%
0JYA.LMarathon Petroleum Corporation2.25%$3.7274.60%
FSBCFive Star Bancorp2.25%$0.8029.79%
IBMInternational Business Machines Corporation2.25%$6.5678.75%
0KYZ.LSBA Communications Corporation2.24%$4.3254.40%
BPOPPopular, Inc.2.24%$2.8224.06%
MFINMedallion Financial Corp.2.24%$0.2312.50%
MSMorgan Stanley2.24%$4.0740.12%
FXNCFirst National Corporation2.23%$0.5586.28%
BACBank of America Corporation2.22%$1.2431.97%
SSBSouthState Corporation2.22%$2.0930.58%
VLGEAVillage Super Market, Inc.2.22%$0.7720.42%
WWWWolverine World Wide, Inc.2.22%$0.4137.79%
CCBGCapital City Bank Group, Inc.2.21%$0.9326.22%
CGThe Carlyle Group Inc.2.20%$1.3476.25%
NHINational Health Investors, Inc.2.20%$1.6954.58%
VNOVornado Realty Trust2.20%$0.7315.58%
BANCBanc of California, Inc.2.19%$0.4332.44%
EBTCEnterprise Bancorp, Inc.2.19%$0.8726.66%
RHPRyman Hospitality Properties, Inc.2.19%$2.0957.31%
CDPCOPT Defense Properties2.18%$0.6045.15%
FDSFactSet Research Systems Inc.2.18%$6.2039.64%
ISBAIsabella Bank Corporation2.18%$1.1044.52%
WHWyndham Hotels & Resorts, Inc.2.18%$1.6437.28%
EFSCEnterprise Financial Services Corp2.17%$1.1722.34%
ETHGrayscale Ethereum Mini Trust2.17%$0.6434.57%
SEMSelect Medical Holdings Corporation2.17%$0.3236.19%
BFSTBusiness First Bancshares, Inc.2.16%$0.5620.21%
CWBCCommunity West Bancshares2.16%$0.4826.89%
EHTHeHealth, Inc.2.16%$0.095.60%
TPLTexas Pacific Land Corporation2.16%$6.4231.02%
CBSHCommerce Bancshares, Inc.2.15%$1.1226.40%
COLMColumbia Sportswear Company2.15%$1.2035.55%
HTHHilltop Holdings Inc.2.15%$0.7328.46%
NATHNathan's Famous, Inc.2.15%$1.9835.76%
RCKYRocky Brands, Inc.2.15%$0.6222.50%
BDXBecton, Dickinson and Company2.14%$4.1771.28%
CICigna Corporation2.14%$5.9626.01%
FBIZFirst Business Financial Services, Inc.2.14%$1.1518.19%
JBSSJohn B. Sanfilippo & Son, Inc.2.14%$1.4926.50%
JNPRJuniper Networks, Inc.2.14%$0.8682.37%
POOLPool Corporation2.14%$4.9244.68%
CSCOCisco Systems, Inc.2.13%$1.6262.56%
CSTRCapStar Financial Holdings, Inc.2.13%$0.4330.48%
HTLFHeartland Financial USA, Inc.2.13%$1.3869.73%