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

Their credit is better — and so are their yields

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ADP

ADP185 AAA Rated Stocks: Better Than U.S. Debt 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%.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/aaa-credit-premium-adp-jnj-msft-xon-aapl/.

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