I wrote about ADP last year here.
My reasoning for buying into this company for the long term:
- ADP is the dominant industry player and the class of their field
- They have a great earnings and dividend growth history
- They earn a high ROE and have low debt
- The company is experiencing a flat earnings period due to a sharp drop off in jobs and economic activity, but I believe they will accelerate out of this well
- I like their potential to grow outside of the US, Canada, and Europe in the coming years
- Feels like a good time to buy this company when unemployment is high, even though the stock has had a bit of a run from it's March lows
ADP is due to to raise their dividend, however their current pay out ratio sits at 50% of earnings.