ADP’s business model Automatic Data Processing (NASDAQ: ADP at https://www.webull.com/quote/nasdaq-adp) is one of the largest business services outsourcing companies in the world. The company provides payroll services to human resources technology and other business operations to more than 700,000 corporate customers. ADP was founded in 1949 and currently trades with a market capitalization of 57 billion dollars. Automatic Data Processing is a well-known dividend stock because of its compelling track record of dividend growth with 44 years of consecutive dividend increases. Automatic Data Processing is a member of the dividend aristocrats index a group of elite dividend stocks with more than 25 years of consecutive dividend increases looking ahead investors cannot rely on 80 peace dividend history alone to measure its dividend safety for the remainder.
You can see this company in four major spectacles, the company’s current dividend safety from 4 perspectives, its dividend safety in the context of its current earnings, its dividend safety in the context of its current free cash flow, its dividend safety in the context of its recession performance and its dividend safety in the context of its current debt load.
All about you need about their dividend policy
Companies do not cut their dividends in the good times instead dividends are reduced when companies experience financial difficulties. With that in mind, the size analyzes automatic data processing’s current dividend safety in the context of the company’s historical recession performance. Everyone believes that the best way to measure accompanies recession resiliency is by assessing its earnings per share performance during the financial crisis that occurred between 2007 and 2009. Automatic Data Processing performance during this time period has been phenomenal. If they have managed to survive such times, then you will be seeing only good things in the future.
Future of automatic data processing?
Automatic Data Processing (NASDAQ: ADP) earnings per share continued their streak of uninterrupted increases during the 2007 to 2009 recession. With that in mind, you have no concerns about the company’s ability to pay rising dividends every future economic downturn the last thing that we will use to assess automatic data processing’s current dividend safety is by looking at the company’s current debt level. More specifically you will see how much the companies weighted average interest rate will need to increase before its free cash flow will no longer.
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Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.