Automatic Data Processing, Inc.
ADPAutomatic Data Processing, Inc. (ADP) is a Technology company that currently yields 2.07% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $187.44 and the overvaluation threshold at $284.60. Automatic Data Processing, Inc. holds a quality score of 42/100 (Average), reflecting 51 consecutive years of dividend growth with a 60% payout ratio. The 5-year dividend CAGR stands at 6.0%.
ADP Dividend Yield History — Weiss Valuation
Distance to undervalued
Waiting for a better entry
Needs about 22.3% downside to reach the Weiss buy zone
Undervaluation starts near $187.44, where the annual dividend would imply roughly 2.67% yield. That is 0.60% above today's yield.
Buy-zone price
$187.44
Target yield
2.67%
Research checklist
What to clear before buying the yield
Updated Jul 9, 2026
Dividend durability
51YLong dividend history supports a deeper look.
Earnings payout
60%Earnings coverage leaves room for noise.
Cash payout
57%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
2026-07-08 → 2026-07-09
Price
-1.7%$245.60 → $241.37
Price fell 1.7% since the prior snapshot.
Why Now?
Automatic Data Processing, Inc. is trading at a fair valuation relative to its dividend history.
Current yield 2.1% vs historical max 3.6% (57% of maximum).
Recent dividend history shows no sustained growth streak.
Reasonable payout ratio of 60%.
What matters now
Read the signal before the headline yield
Valuation is neutral here: quality has to do more of the work than entry price.
The 42/100 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
$220
Year 10 Income
$476
Yield on Cost
4.93%
Total Income
$3,300
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
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗ADP Dividend Quality Score
Quality Score
Average
Key Metrics
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