Three Dividend Kings: ADP, Walmart, and American States Water
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: Fool
- Dividend Growth Potential: Automatic Data Processing (ADP) is projected to generate $21.8 billion in revenue this fiscal year, a 5.8% increase, and its 51 consecutive years of dividend growth make it a stable investment choice for long-term yield seekers.
- Retail Giant Advantage: Walmart (WMT) has seen its stock price rise 156% over the past three years, and while its current dividend yield is only 0.79%, its strong market presence in the U.S. and ongoing stock buyback programs provide additional value for investors.
- Utility Sector Resilience: American States Water (AWR) has raised its dividend for 70 consecutive years, with an average annual increase of over 8% in the past decade, benefiting from increased pricing power due to water scarcity and rising electricity demands, indicating strong future growth potential.
- Portfolio Diversification: These three Dividend Kings not only offer stable cash flow but also demonstrate strong market positions in their respective industries, making them suitable for investors looking to enhance wealth through dividend investments.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ADP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 208.280
Low
230.00
Averages
276.83
High
332.00
Current: 208.280
Low
230.00
Averages
276.83
High
332.00
About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Guggenheim Initiates Buy Rating on ADP, Citing Competitive Advantages
- Coverage Initiation: Guggenheim has initiated a Buy rating on Automatic Data Processing (ADP), arguing that its scale and diversification provide competitive advantages that are expected to drive stock price appreciation.
- Stock Performance: ADP's stock rose 1.3% in late morning trading on Thursday, despite previously underperforming due to fears of AI replacing workers, indicating market recognition of its potential.
- Market Advantages: With 1.1 million customers and compliance infrastructure spanning 12,000 tax jurisdictions, ADP's capabilities and integration with 8,000 banks and tax authorities provide significant market insulation.
- Strategic Expansion: The launch of Lyric HCM is viewed as a strategic opportunity for ADP to enter the large enterprise HCM market, potentially challenging competitors like Workday, SAP, and Oracle.
See More
ADP Stock Down 36% Yet Remains a Quality Dividend Buy
- Stock Price Decline: Automatic Data Processing (ADP) has seen its stock price drop by 36% since mid-last year, primarily due to a weakening job market, disappointing revenue growth guidance, and analyst downgrades, which have raised investor concerns about its future performance.
- Diversified Business Advantage: While artificial intelligence may impact payroll processing, ADP's diverse offerings in benefits administration, employee recruiting, and compliance help maintain its competitive edge, especially since these services have little tolerance for errors that AI might introduce.
- Attractive Dividend Yield: Currently, ADP boasts a dividend yield exceeding 3.2%, bolstered by 51 consecutive years of dividend increases, earning it the title of
See More
Analysis of ADP's 36% Stock Decline Reasons
- Significant Stock Decline: Automatic Data Processing (ADP) has seen its stock price drop by 36% since mid-last year, primarily due to a weakening job market and disappointing revenue growth guidance, which has led to investor concerns about its future prospects.
- Misunderstanding of AI Threat: While AI may impact the payroll processing business, ADP is not just a payroll processor; its services in employee recruiting, compliance, and recordkeeping are still essential, and these areas have little tolerance for errors, which AI could potentially introduce.
- Dividend Appeal: ADP's forward-looking dividend yield has risen to over 3.2%, bolstered by its record of raising dividends for 51 consecutive years, making it a
See More
Latest Wall Street Ratings Overview
- Apple's Product Strategy: Bernstein reiterates Apple as outperform, viewing recent product launches as a strategy to widen price bands to gain market share in the lower end while raising prices at the high end to maintain margins, showcasing its flexible market approach.
- Micron's Strong Pricing: Bank of America reiterates Micron as a buy, anticipating “stronger pricing for longer” following the company's earnings report on Wednesday, raising the price target from $400 to $500, reflecting optimism about a durable memory cycle.
- Nvidia Strong Buy Rating: Raymond James raises Nvidia's price target from $291 to $323 while maintaining a Strong Buy rating, projecting cumulative GPU sales to reach $1 trillion by 2027, indicating a positive market outlook.
- Carnival Upgraded to Overweight: Morgan Stanley upgrades Carnival from equal weight to overweight, citing the company's strong performance across multiple fronts, including robust free cash flow and industry improvements, suggesting a favorable risk-reward balance moving forward.
See More
U.S. Private Sector Job Growth Slows
- Job Growth Slowdown: For the four weeks ending February 28, 2026, U.S. private employers added an average of 9,000 jobs per week, indicating a slowdown in hiring after several weeks of strengthening, which could impact the overall pace of economic recovery.
- Data Adjustment and Release: These figures are based on a four-week moving average of ADP's high-frequency data, and while the current numbers are preliminary, they may change as new data is incorporated, reflecting the dynamic nature of the labor market.
- NER Pulse Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing historical data for the past 12 weeks, aimed at offering accurate estimates of real-time employment trends to assist businesses and policymakers in making informed decisions.
- ADP's Mission and Impact: ADP Research aims to enhance workplace productivity through data-driven insights, with over 1.1 million clients relying on its innovative solutions to tackle HR and payroll challenges, further driving business growth.
See More
U.S. Private Sector Job Growth Slows
- Job Growth Data: For the four weeks ending February 28, 2026, U.S. private employers added an average of 9,000 jobs per week, indicating a slight growth trend in the job market; however, this is a significant slowdown compared to the previous weeks' averages of 14,750 and 15,500 jobs, which may impact confidence in economic recovery.
- Data Adjustment and Release: These figures are seasonally adjusted and have a two-week lag to ensure more accurate real-time employment trend estimates, with the NER Pulse published every Tuesday, providing timely insights into employment market dynamics that assist businesses and policymakers in making informed decisions.
- Historical Data Reference: The NER Pulse includes 12 weeks of historical data, highlighting the volatility of the job market, especially amid increasing economic uncertainty, and serves as a crucial reference for analyzing future employment trends.
- ADP's Role: As a global leader in HR and payroll solutions, ADP leverages its finely tuned data and unique perspective to help businesses and policymakers tackle workplace challenges, further driving sustainable economic development.
See More
Guggenheim Initiates Buy Rating on ADP, Citing Competitive Advantages
- Coverage Initiation: Guggenheim has initiated a Buy rating on Automatic Data Processing (ADP), arguing that its scale and diversification provide competitive advantages that are expected to drive stock price appreciation.
- Stock Performance: ADP's stock rose 1.3% in late morning trading on Thursday, despite previously underperforming due to fears of AI replacing workers, indicating market recognition of its potential.
- Market Advantages: With 1.1 million customers and compliance infrastructure spanning 12,000 tax jurisdictions, ADP's capabilities and integration with 8,000 banks and tax authorities provide significant market insulation.
- Strategic Expansion: The launch of Lyric HCM is viewed as a strategic opportunity for ADP to enter the large enterprise HCM market, potentially challenging competitors like Workday, SAP, and Oracle.
See More
ADP Stock Down 36% Yet Remains a Quality Dividend Buy
- Stock Price Decline: Automatic Data Processing (ADP) has seen its stock price drop by 36% since mid-last year, primarily due to a weakening job market, disappointing revenue growth guidance, and analyst downgrades, which have raised investor concerns about its future performance.
- Diversified Business Advantage: While artificial intelligence may impact payroll processing, ADP's diverse offerings in benefits administration, employee recruiting, and compliance help maintain its competitive edge, especially since these services have little tolerance for errors that AI might introduce.
- Attractive Dividend Yield: Currently, ADP boasts a dividend yield exceeding 3.2%, bolstered by 51 consecutive years of dividend increases, earning it the title of
See More
Analysis of ADP's 36% Stock Decline Reasons
- Significant Stock Decline: Automatic Data Processing (ADP) has seen its stock price drop by 36% since mid-last year, primarily due to a weakening job market and disappointing revenue growth guidance, which has led to investor concerns about its future prospects.
- Misunderstanding of AI Threat: While AI may impact the payroll processing business, ADP is not just a payroll processor; its services in employee recruiting, compliance, and recordkeeping are still essential, and these areas have little tolerance for errors, which AI could potentially introduce.
- Dividend Appeal: ADP's forward-looking dividend yield has risen to over 3.2%, bolstered by its record of raising dividends for 51 consecutive years, making it a
See More
Latest Wall Street Ratings Overview
- Apple's Product Strategy: Bernstein reiterates Apple as outperform, viewing recent product launches as a strategy to widen price bands to gain market share in the lower end while raising prices at the high end to maintain margins, showcasing its flexible market approach.
- Micron's Strong Pricing: Bank of America reiterates Micron as a buy, anticipating “stronger pricing for longer” following the company's earnings report on Wednesday, raising the price target from $400 to $500, reflecting optimism about a durable memory cycle.
- Nvidia Strong Buy Rating: Raymond James raises Nvidia's price target from $291 to $323 while maintaining a Strong Buy rating, projecting cumulative GPU sales to reach $1 trillion by 2027, indicating a positive market outlook.
- Carnival Upgraded to Overweight: Morgan Stanley upgrades Carnival from equal weight to overweight, citing the company's strong performance across multiple fronts, including robust free cash flow and industry improvements, suggesting a favorable risk-reward balance moving forward.
See More
U.S. Private Sector Job Growth Slows
- Job Growth Slowdown: For the four weeks ending February 28, 2026, U.S. private employers added an average of 9,000 jobs per week, indicating a slowdown in hiring after several weeks of strengthening, which could impact the overall pace of economic recovery.
- Data Adjustment and Release: These figures are based on a four-week moving average of ADP's high-frequency data, and while the current numbers are preliminary, they may change as new data is incorporated, reflecting the dynamic nature of the labor market.
- NER Pulse Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing historical data for the past 12 weeks, aimed at offering accurate estimates of real-time employment trends to assist businesses and policymakers in making informed decisions.
- ADP's Mission and Impact: ADP Research aims to enhance workplace productivity through data-driven insights, with over 1.1 million clients relying on its innovative solutions to tackle HR and payroll challenges, further driving business growth.
See More
U.S. Private Sector Job Growth Slows
- Job Growth Data: For the four weeks ending February 28, 2026, U.S. private employers added an average of 9,000 jobs per week, indicating a slight growth trend in the job market; however, this is a significant slowdown compared to the previous weeks' averages of 14,750 and 15,500 jobs, which may impact confidence in economic recovery.
- Data Adjustment and Release: These figures are seasonally adjusted and have a two-week lag to ensure more accurate real-time employment trend estimates, with the NER Pulse published every Tuesday, providing timely insights into employment market dynamics that assist businesses and policymakers in making informed decisions.
- Historical Data Reference: The NER Pulse includes 12 weeks of historical data, highlighting the volatility of the job market, especially amid increasing economic uncertainty, and serves as a crucial reference for analyzing future employment trends.
- ADP's Role: As a global leader in HR and payroll solutions, ADP leverages its finely tuned data and unique perspective to help businesses and policymakers tackle workplace challenges, further driving sustainable economic development.
See More
