Retirement Stock Portfolio: 12 Safe Tech Stocks To Consider

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

Beta Value: 0.80

Dividend Yield: 1.95%

Number of Hedge Fund Holders: 52

Automatic Data Processing, Inc. (NASDAQ:ADP) is a global technology company specializing in cloud-based human capital management (HCM) solutions. ADP offers a range of strategic platforms and HR outsourcing services to help organizations manage their workforce efficiently.

BofA Securities recently raised its price target for Automatic Data Processing, Inc. (NASDAQ:ADP) to $281, up from the previous $276, while maintaining a Neutral rating on the stock. This follows an earlier upgrade in January 2024, where the firm cited improvements in ADP’s Professional Employer Organization (PEO) segment and predicted that growth and margins would stabilize after the second fiscal quarter. The analyst noted that payroll stocks, including ADP, tend to underperform during the early stages of rising unemployment. However, ADP’s fourth fiscal quarter results were solid, with strong bookings enabling the company to hit the upper end of its projected 4-7% growth for FY 2024. Preliminary guidance for FY 2025 also aligns with market expectations.

Additionally, Automatic Data Processing, Inc. (NASDAQ:ADP) has introduced ADP Lyric HCM, a platform designed to offer flexible, intelligent, and personalized HR solutions on a global scale. The company also announced the pricing of $1 billion in 4.450% senior notes due in 2034 for general corporate purposes.

As a consistent dividend payer, Automatic Data Processing, Inc. (NASDAQ:ADP) is considered a safe tech stock for generating passive income, having increased its dividend for 49 consecutive years. By the end of Q2 2024, 52 hedge funds tracked by Insider Monkey held stakes in ADP, with a combined value exceeding $3.06 billion.