Automatic Data Processing, Inc.
ADPAutomatic Data Processing, Inc. (ADP) is a Technology company that currently yields 2.22% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $185.02 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 17.9% downside to reach the Weiss buy zone
Undervaluation starts near $185.02, where the annual dividend would imply roughly 2.70% yield. That is 0.48% above today's yield.
Buy-zone price
$185.02
Target yield
2.70%
Research checklist
What to clear before buying the yield
Updated May 25, 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
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Automatic Data Processing, Inc. is trading at a fair valuation relative to its dividend history.
Current yield 2.2% vs historical max 3.6% (61% 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
$235
Year 10 Income
$519
Yield on Cost
5.39%
Total Income
$3,569
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗ADP Dividend Quality Score
Quality Score
Average
Key Metrics
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