10 Best S&P 500 Stocks to Buy For Dividend Growth

8. Automatic Data Processing, Inc. (NASDAQ:ADP)

5-Year Average Dividend Growth Rate: 11.58%

Automatic Data Processing, Inc. (NASDAQ:ADP) is a New Jersey-based company that offers human resource management software and services. It focuses on technological innovation, global expansion, and outsourcing solutions. Recently, the company has prioritized AI-driven products and broadened its international presence. These initiatives are its key strategies, aimed at improving customer experience and operational efficiency.

In fiscal Q2 2025, Automatic Data Processing, Inc. (NASDAQ:ADP) reported an 8% year-over-year revenue increase, reaching $5.05 billion. Interest revenue from client funds also saw strong growth, rising 21% to $273 million, driven by higher balances and improved interest rates. These gains helped offset operational costs and reinforced the company’s financial stability.

Looking ahead, Automatic Data Processing, Inc. (NASDAQ:ADP) projects full-year revenue growth of 6% to 7% and expects to expand its adjusted EBIT margin by 30 to 50 basis points. The company maintains a solid financial position, ending the quarter with over $2.2 billion in cash and cash equivalents. During the first half of the fiscal year, operating cash flow rose to nearly $2 billion, up from $1.35 billion in the prior-year period.

Automatic Data Processing, Inc. (NASDAQ:ADP), one of the best dividend stocks, is a Dividend King, as the company maintains a 50-year streak of consistent dividend growth. In the past five years, the company has raised its payouts at an annual average rate of 11.58%. It offers a quarterly dividend of $1.54 per share for a dividend yield of 2.04%, as of March 26.