ADP offers a range of human resource, payroll, tax and benefits administration products. The company also provides integrated computing services to equipment manufacturers and retailers. Make no mistake: These guys are fist-deep in the technology-based age of information and services.
ADP has the lowest market cap of our AAA-rated companies at $26 billion, but smaller does not mean weaker. A 13% profit margin, 22% return on equity, $1.9 billion in operating cash flow, $2 billion in cash and a paltry debt load provide a solid fundamental base. And it’s a dependable dividend stock — a steady 40-cent quarterly payout provides an attractive yield around 3%.