13 Best Dividend Growth Stocks With 10%+ Yearly Increases

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

5-Year Average Annual Dividend Growth Rate: 11.84%

Automatic Data Processing, Inc. (NASDAQ:ADP) is an American management services company that offers payroll processing, tax administration, and human capital management services to its consumers. With operations spanning 140 countries, the company manages payroll for approximately one in six US workers, serving a total of 16 million employees globally. Its extensive client base has solidified ADP’s position as a leader in the industry, delivering both operational efficiency and key economic insights derived from its workforce data. These insights, including wage benchmarks, provide businesses with a competitive advantage, further strengthening the company’s service portfolio.

Since the start of 2025, Automatic Data Processing, Inc. (NASDAQ:ADP) has surged by over 5%. The company utilizes its cloud-based software and solutions to streamline workforce logistics, allowing businesses to focus on growth. In the second quarter of fiscal 2025, it reported an 8% year-over-year increase in revenue, reaching $5.05 billion. Looking ahead, the company expects revenue growth of 6% to 7% for the full fiscal year, along with an adjusted EBIT margin expansion of 30 to 50 basis points.

Automatic Data Processing, Inc. (NASDAQ:ADP) maintained a strong cash position, closing the quarter with more than $2.2 billion in cash and cash equivalents. Over the first half of the fiscal year, the company generated close to $2 billion in operating cash flow, marking an increase from $1.35 billion during the same period last year. With a 50-year streak of dividend growth under its belt, ADP is one of the best dividend stocks to invest in. The company offers a quarterly dividend of $1.54 per share and has a dividend yield of 2.01%, as of February 8.