Automatic Data Processing (NASDAQ:ADP) — This is one of the world’s largest independent computing services companies and the largest provider of payroll outsourcing services, offering tax filing and benefits administration.
The company has a buyback program in force and recently increased its annual dividend by 10% to $1.74, marking the 38th consecutive year of dividend increases. The stock currently yields more than 3%.
ADP earned $2.82 in fiscal year (FY) 2012 versus analysts’ estimates of $2.75. It is expected to earn $2.91 in FY 2013, ended in June.
Technically the stock is in a long-term bull market, and on Nov. 29, it popped through its 200-day and 20-day moving averages, reversing from its bullish support line and confirming the trend. Note the high accumulation and MACD buy signal. The target for ADP is $65.