14 Best Large Cap Dividend Growth Stocks To Buy Now

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

5-Year Average Annual Dividend Growth Rate: 11.84%

An American management services company, Automatic Data Processing, Inc. (NASDAQ:ADP) ranks eleventh on our list of the best dividend stocks. The company offers payroll processing, tax administration, and human capital management services to its consumers. It leverages its cloud-based software and solutions to optimize workforce logistics, enabling businesses to concentrate on growth. In the second quarter of fiscal 2025, it saw an 8% year-over-year revenue increase, reaching $5.05 billion. Looking forward, the company projects revenue growth of 6% to 7% for the entire fiscal year, along with an expansion of its adjusted EBIT margin by 30 to 50 basis points. The stock has soared by about 23% in the past 12 months.

Operating in 140 countries, Automatic Data Processing, Inc. (NASDAQ:ADP) handles payroll for roughly one in six US workers, serving a global workforce of 16 million employees. Its broad client base has cemented ADP’s leadership in the industry, offering both operational efficiency and valuable economic insights drawn from its workforce data. These insights, such as wage benchmarks, give businesses a competitive edge, further enhancing the company’s service offerings.

Automatic Data Processing, Inc. (NASDAQ:ADP) currently pays a quarterly dividend of $1.54 per share and has a dividend yield of 2.01%, as of February 12. The company ended the quarter with a solid cash position, holding over $2.2 billion in cash and cash equivalents. In the first half of the fiscal year, the company generated nearly $2 billion in operating cash flow, up from $1.35 billion in the same period last year. With 50 consecutive years of dividend growth, ADP stands out as one of the top dividend stocks to invest in.