Automatic Data Processing, Inc.
ADPAutomatic Data Processing, Inc. (ADP) is a Technology company that currently yields 1.78% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $188.89 and the overvaluation threshold at $284.60. Automatic Data Processing, Inc. holds a quality score of 37/100 (Risky), reflecting 51 consecutive years of dividend growth with a 61% payout ratio. The 5-year dividend CAGR stands at 6.0%.
ADP Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 32.7% downside to reach the Weiss buy zone
Undervaluation starts near $188.89, where the annual dividend would imply roughly 2.65% yield. That is 0.87% above today's yield.
Buy-zone price
$188.89
Target yield
2.65%
Research checklist
What to clear before buying the yield
Updated Aug 23, 2026
Dividend durability
51YLong dividend history supports a deeper look.
Earnings payout
61%Earnings coverage leaves room for noise.
Cash payout
52%Free cash flow coverage supports the payment.
Dividend growth
6.0%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-08-22 → 2026-08-23
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Automatic Data Processing, Inc. is trading near its historical overvaluation band.
Current yield 1.8% vs historical max 3.6% (49% of maximum).
Recent dividend history shows no sustained growth streak.
Reasonable payout ratio of 61%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 37/100 quality score says the headline yield needs extra skepticism.
Start by checking whether payout coverage and business durability still support the dividend.
ADP Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$189
Year 10 Income
$395
Yield on Cost
4.08%
Total Income
$2,785
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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Dividend income log · Yield on cost · DRIP cost basis · Tax reports
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Full price history & technical analysis
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Sharesight ↗ADP Dividend Quality Score
Quality Score
Risky
Key Metrics
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