15 Best Dividend Stocks To Buy and Hold

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

Number of Hedge Fund Holders: 49

Automatic Data Processing, Inc. (NASDAQ:ADP) ranks twelfth on our list of the best dividend stocks to buy and hold. The American management services company offers payroll processing, tax administration, and human capital management services to its consumers. The company leverages its cloud-based software and solutions to help businesses concentrate on growth while managing the complexities of workforce logistics.

Operating in 140 countries, Automatic Data Processing, Inc. (NASDAQ:ADP) handles payroll for one in six US workers and a total of 16 million employees worldwide. Its vast client network has established ADP as an industry leader, providing operational efficiency and valuable economic insights through its aggregated workforce data. These insights, such as wage benchmarks, offer businesses a competitive edge, further enhancing the company’s service offerings. In the past 12 months, the stock has delivered a nearly 23% return to shareholders.

In fiscal Q2 2025, Automatic Data Processing, Inc. (NASDAQ:ADP) reported revenue of $5.05 billion, up 8% from the same period last year. For fiscal year 2025, the company expects revenue growth of 6% to 7%, along with an adjusted EBIT margin improvement ranging between 30 and 50 basis points.

Automatic Data Processing, Inc. (NASDAQ:ADP)’s cash position remained stable as it ended the quarter with over $2.2 billion available in cash and cash equivalents. In the first six months of the fiscal year, the company generated nearly $2 billion in operating cash flow, showing an improvement from $1.35 billion in the prior-year period. It is one of the best dividend stocks on our list as the company has been rewarding shareholders with growing dividends for 50 consecutive years. Currently, it offers a quarterly dividend of $1.54 per share and has a dividend yield of 2.02%, as of February 4.

Automatic Data Processing, Inc. (NASDAQ:ADP) was included in 49 hedge fund portfolios at the end of Q3 2024, compared with 52 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these funds are worth over $3.5 billion in total. Among these hedge funds, Fundsmith LLP was the company’s leading stakeholder in Q3.