This Incredible Dividend Stock Treats Its Investors Like Royalty The Motley Fool

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With a more than 2% dividend yield and double-digit earnings and dividend growth, the HCM solutions provider could deliver an average annual total return percentage in the low-to-mid teens. The company currently expects its revenue to rise by 6% to 7% in fiscal 2024 as it captures more of its large and steadily growing addressable market. Those numbers align with the medium-term growth targets it outlined at its last investor day in 2021, which were 7% to 8% annual revenue growth and 11% to 13% adjusted earnings-per-share growth. ADP is a payroll and HR platform available for organizations of all sizes. Its RUN service is designed for startups and small businesses with less than 50 employees.

  • For many businesses, the lack of transparent pricing on the site is a major deterrent.
  • ADP Workforce Now on the other hand is a cloud-based solution that provides companies with a platform that enables them to manage all their HR needs from one place.
  • ADP’s financial fortress puts its dividend on an extremely firm foundation.
  • The company estimates that the total addressable market opportunity for its HCM solutions is $150 billion.

It’s cloud-based, has tons of user-friendly features, is accessible on mobile and desktop devices and is easy to use. In this ADP Workforce Now review, we’ll go over its main features, pricing and plan options as well as its pros and cons so that you can decide whether this product works for your business needs. And its streak of payout hikes should continue beyond this year, given the company’s fortress-like financial profile and strong growth prospects. Add in its above-average yield, and ADP looks like a great dividend stock to buy. It can produce an attractive, steadily rising income stream while offering compelling total return potential.

Add in its above-average dividend yield (2.4% compared to an average of 1.5% for the S&P 500), and ADP is a great stock for those seeking an attractive and steadily rising income stream. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Learn more about diversity, equity, and inclusion at ADP on our YouTube channel. ADP Workforce Now is an ideal solution for companies that need a complete HR system that can handle any type of business process.

We are a global leader in human resources technology, offering the latest AI and machine learning-enhanced payroll, tax, human resources, benefits, and much more. We believe our people make all the difference in cultivating an inclusive, down-to-earth culture that welcomes ideas, encourages innovation, and values belonging. That’s a strong growth rate, considering the current expectation that companies in the S&P 500 will, on average, grow their dividends by around 6% annually over the next few years. That forecast suggests ADP should be able to continue growing its dividend at an above-average rate.

Other Benefits

The company is targeting a dividend payout ratio of 55% to 60% of its adjusted earnings. The leading payroll and human capital management (HCM) solutions provider raised its payout for the 49th straight year in 2023. This year should be its 50th year of dividend growth, which would put it into the noble class of Dividend Kings.

Additionally, after you receive an estimate, the price could alter over time as promotional offers expire and new ones come into existence. The objective for Alliance Senior Manager will accelerate alliance https://adprun.net/adp-jobs/ partnerships with Tier I consulting, Global HCM Partners, Global SIs and Global BPO Partners in the region. Compared to ADP, Paycor costs extra since it offers more than just basic payroll services.

NASDAQ: ADP

It’s also a great fit for small businesses and enterprises that need a single platform to cater to their staffing needs instead of having multiple apps or systems. Powerful Reporting and Insights
ADP Workforce Now uses machine learning and their robust ADP® DataCloud to discover workforce insights by running reports and uncovering anomalies and trends from data. With ADP Workforce Now, you can manage labor costs, boost productivity and easily process payroll. The software also helps you find qualified talents through ZipRecruiter® reducing complicated workflows and managing budgets effectively.

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It paid less than half that cash flow in dividends ($1.9 billion), leaving ample excess cash to fund growth-related investments and return additional money to investors through share repurchases. With more than 70 years of experience and 90,000-plus clients, ADP is regarded as one of the biggest names in human resources (HR) software and services. The ADP Workforce Now software serves as an end-to-end solution to help business owners manage payroll, HR and benefits. ADP Workforce Now is a robust human resources (HR) and payroll software made for medium to large businesses and enterprises.

How ADP Workforce Now Stacks Up

For ADP Workforce Now, it’s a business management software designed to provide robust HR management features for small businesses and larger enterprises. TotalSource is a professional employer organization (PEO) from ADP that offers payroll, HR, benefits, compliance and workers’ compensation for small and midsized businesses (SMBs). ADP Workforce Now on the other hand is a cloud-based solution that provides companies with a platform that enables them to manage all their HR needs from one place. For many businesses, the lack of transparent pricing on the site is a major deterrent. Without speaking to a sales agent, you cannot determine the cost of the software for your firm’s requirements, which can be tiresome and time-consuming for a small business owner.

Find Your Next Great Hire Through ZipRecruiter’s Online Employment Marketplace

ADP is already the category leader in most of the markets in which it participates. However, that doesn’t mean it doesn’t have a long growth runway. The company estimates that the total addressable market opportunity for its HCM solutions is $150 billion. With its revenue reaching $18 billion last year, it still has plenty of room to grow. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

ADP Workforce Now does not have its pricing published on the site so you have to reach out to a sales representative to get custom pricing that suits your company’s needs. Users report that pricing starts from $62 per month, though the average business should expect to spend a lot more than that. For example, the ADP support team quoted payroll-only for 50 employees at $400 per month. That sets ADP up to potentially produce attractive total returns.

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