ADP: 28% Plunge Reveals an Undervalued Dividend King with Strong Growth

Automatic Data Processing (ADP) appears to be undervalued following a substantial 28% drop in its share price, now trading at a price-to-earnings multiple of 20x and offering a 3.1% dividend yield. The company's robust financial position, impressive profit margins, and consistent recurring revenue streams underscore its status as a Dividend King, supported by a 51-year record of dividend increases, indicating significant dividend safety. Recent financial disclosures show ADP surpassing analyst expectations, reporting a 7.2% increase in revenue and an 11% rise in earnings per share, which has led management to elevate its adjusted EPS guidance for 2026 to a range of 9–11%.

Based on our data, Automatic Data Processing (ADP) holds an RS Score of 63.85, placing it in the 38.55th percentile within its country and the 38.00th percentile in its sector. The company demonstrates strong performance in Profitability (95.23) and EPS Revisions (90.00). However, areas such as Valuation (61.58), Growth (61.34), and particularly Momentum (6.60) show weaker scores. Want to discover which stocks rank the highest? Start your free 7-day trial at rankedstocks.com.