This Incredible Dividend Stock Treats Its Investors Like Royalty

(NASDAQ: ADP) is an elite dividend stock. 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.

What's even more impressive about ADP is that it hasn't been making a habit of giving investors paltry annual raises to keep its streak alive. For example, it raised its payment by 12% last year. Add in its above-average dividend yield (2.4% compared to an average of 1.5% for the S 500), and ADP is a great stock for those seeking an attractive and steadily rising income stream.

ADP is a global leader in providing HCM software and solutions. It has over 1 million clients across 140 countries, and provides payroll services for more than 41 million workers. The company's business generates lots of recurring revenue and cash flow, partly thanks to its strong client retention rate (92.2% in its fiscal 2023, which ended June 30). It generated $18 billion in revenue during its last fiscal year (up 9%) and $4.2 billion in cash flow (up nearly 36%). 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.

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Source Fool.com