Automatic Data Processing, Inc.

ADP
TechnologyDividend King
$241.37
2.07%Fair Value

Automatic 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

Underval. $187.44Overval. $284.60

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

51Y

Long 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

2026-07-082026-07-09

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

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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ADP Dividend Quality Score

Quality Score

42/ 100

Average

Payout Ratio12/25
Dividend Streak0/25
Growth (CAGR 5Y)15/20
Yield vs History5/15
FCF Coverage10/15

Key Metrics

Current Price$241.37
Annual Dividend$5.00
Current Yield2.07%
Yield — Max (10Y)3.63%
Yield — Min (10Y)1.84%
Undervalued Below$187.44
Overvalued Above$284.60
Payout Ratio60.45%
CAGR Dividend 5Y6.0%
CAGR Dividend 10Y9.1%
Years No Cut

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51
consecutive years of dividend growth
ADP Dividend Analysis — Automatic Data Processing, Inc. | DividendVisual