Automatic Data Processing (Nasdaq:ADP)

Automatic Data Processing (Nasdaq:ADP) is one of the largest providers of payroll and human resources services to businesses. They tailor their services based on the size of the client, although they have made their mark primarily on multinationals and large enterprises. ADP has 550,000 clients to whom it can provide the benefit of its 60 years of experience..

HR support services provided by ADP are among the sectors that are resisting the crisis, as it is true that employees will always have to be paid if they are to provide a service. In addition, the cumbersome procedures and systems that must be put in place mean that you cannot change suppliers overnight. SAP provided us with a good example of this.

ADP offre actuellement un dividende de 3.3%, soit sensiblement plus que sa moyenne à long terme qui est de 2.94%. La société est parvenue à l'augmenter de 15.19% par an sur le moyen terme, ce qui est déjà très bon, mais de plus elle n'a cessé de le faire croître depuis 34 ans, ce qui en fait un dividend aristocrat. Je vous laisse imaginer le dividend yield que vous auriez obtenu aujourd'hui en achetant le titre à l'époque ...

Despite the strong dividend growth, the payout ratio is 57.4%, which is correct and leaves ADP with some margin in case of a difficult passage.

Terminons par la volatility, qui, paradoxalement pour un titre du Nasdaq, est l'un des principaux points forts de la société, avec 8.7%, soit même moins que Procter & Gamble. Quand je vous disais que le secteur était de style défensif...

From these indicators, our algorithm is of course still in hold position. Even though ADP has underperformed like many of our stocks in recent months, we still keep the long term in mind...