AAA-Rated Stocks: Better Than U.S. Debt

Their credit is better — and so are their yields

Jun 7, 2012, 11:58 am EDT | By Marc Bastow, InvestorPlace Assistant Editor

ADP

ADP ADP (NYSE:ADP) simply provides business outsourcing solutions. Yeah, and Apple (NASDAQ:AAPL) just makes computers.

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%.