Three Top Dividend Stocks to Buy and Hold Forever
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Automatic Data Processing: Automatic Data Processing (ADP) has raised its per-share dividend for the 51st consecutive year, with a current yield of 2.97%, indicating strong performance in cash flow and shareholder returns, particularly as its diverse HR management services continue to attract investor interest amid the rise of artificial intelligence.
- Digital Realty Trust: Digital Realty Trust (DLR), structured as a REIT with over 300 data centers, may not yet have a strong dividend growth record, but its structure allows for most rental profits to be passed to shareholders, offering a forward-looking yield of 2.7%, making it an appealing option for income-seeking investors.
- NextEra Energy: NextEra Energy (NEE) has raised its dividend annually for 31 years, currently yielding 2.44%, and its investments in renewable energy position it favorably in the future energy market, ensuring ongoing cash flow and shareholder returns as electricity demand continues to rise.
- Market Outlook: These three companies demonstrate significant market potential in their respective fields, with ADP diversifying its HR services, DLR leveraging its data center leasing model, and NEE investing in renewables, all providing investors with confidence for long-term holdings, especially amid increasing economic uncertainty.
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Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 213.080
Low
230.00
Averages
276.83
High
332.00
Current: 213.080
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.
Three Top Dividend Stocks to Buy and Hold Forever
- Automatic Data Processing: Automatic Data Processing (ADP) has raised its per-share dividend for the 51st consecutive year, with a current yield of 2.97%, indicating strong performance in cash flow and shareholder returns, particularly as its diverse HR management services continue to attract investor interest amid the rise of artificial intelligence.
- Digital Realty Trust: Digital Realty Trust (DLR), structured as a REIT with over 300 data centers, may not yet have a strong dividend growth record, but its structure allows for most rental profits to be passed to shareholders, offering a forward-looking yield of 2.7%, making it an appealing option for income-seeking investors.
- NextEra Energy: NextEra Energy (NEE) has raised its dividend annually for 31 years, currently yielding 2.44%, and its investments in renewable energy position it favorably in the future energy market, ensuring ongoing cash flow and shareholder returns as electricity demand continues to rise.
- Market Outlook: These three companies demonstrate significant market potential in their respective fields, with ADP diversifying its HR services, DLR leveraging its data center leasing model, and NEE investing in renewables, all providing investors with confidence for long-term holdings, especially amid increasing economic uncertainty.
See More
U.S. Private Sector Job Growth Accelerates
- Job Growth Trend: For the four weeks ending January 31, 2026, U.S. private employers added an average of 10,250 jobs per week, indicating a strengthening trend in job gains for three consecutive weeks, suggesting a gradual economic recovery.
- Data Source and Adjustments: The data comes from the NER Pulse, which is seasonally adjusted based on ADP's high-frequency data, ensuring accurate estimates of real-time employment trends and reflecting sustained demand for labor in the market.
- Historical Data Comparison: Compared to the previous week, the job additions on January 31 increased by 32% from 7,750 jobs on January 24, showcasing a robust recovery in the job market that could positively impact consumer confidence and spending.
- Future Release Schedule: The next NER Pulse will be released on February 24, 2026, with ADP Research collaborating with the Stanford Digital Economy Lab to regularly provide employment data, aiding businesses and policymakers in making more informed decisions.
See More
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
Market Sell-Off Drives Tech Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, highlighting its robust growth potential in payroll processing.
- Merger Prospects for AWK: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, yet its merger with Essential Utilities has shareholder approval; if regulatory approval is granted, it could help maintain long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a 21% drop in PayPal's stock price, the new CEO may consider strategic alternatives; with a current valuation below 8 times forward earnings, any proactive measures from management could trigger a rebound in stock price and restore investor confidence.
- Widespread AI Concerns: The market's apprehension regarding the potential disruptive impact of generative AI across various sectors has led to significant sell-offs, affecting not only tech stocks but also non-tech names, reflecting a cautious investor sentiment about the economic outlook.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Paycom Software's 2026 Revenue Forecast Falls Short of Expectations
- Revenue Forecast Downgrade: Paycom projects its 2026 revenue to be between $2.18 billion and $2.20 billion, falling short of analysts' average estimate of $2.23 billion, indicating a cautious approach amid macroeconomic challenges that may impact investor confidence.
- Stock Price Volatility: Paycom's shares dropped over 7% in after-hours trading as businesses delay or reduce HR and payroll software purchases due to tighter budgets, reflecting market concerns about its future performance.
- Customer Acquisition Challenges: Analysts note that macroeconomic challenges could constrain Paycom's new customer acquisition, particularly as hiring slows or layoffs occur among small and medium-sized businesses, which are crucial to its core client base.
- Intensifying Competition: The human capital management market is becoming increasingly crowded, with Paycom facing pressure from competitors like ADP, Paylocity, and Workday, which could further weaken its market share and profitability.
See More
Three Top Dividend Stocks to Buy and Hold Forever
- Automatic Data Processing: Automatic Data Processing (ADP) has raised its per-share dividend for the 51st consecutive year, with a current yield of 2.97%, indicating strong performance in cash flow and shareholder returns, particularly as its diverse HR management services continue to attract investor interest amid the rise of artificial intelligence.
- Digital Realty Trust: Digital Realty Trust (DLR), structured as a REIT with over 300 data centers, may not yet have a strong dividend growth record, but its structure allows for most rental profits to be passed to shareholders, offering a forward-looking yield of 2.7%, making it an appealing option for income-seeking investors.
- NextEra Energy: NextEra Energy (NEE) has raised its dividend annually for 31 years, currently yielding 2.44%, and its investments in renewable energy position it favorably in the future energy market, ensuring ongoing cash flow and shareholder returns as electricity demand continues to rise.
- Market Outlook: These three companies demonstrate significant market potential in their respective fields, with ADP diversifying its HR services, DLR leveraging its data center leasing model, and NEE investing in renewables, all providing investors with confidence for long-term holdings, especially amid increasing economic uncertainty.
See More
U.S. Private Sector Job Growth Accelerates
- Job Growth Trend: For the four weeks ending January 31, 2026, U.S. private employers added an average of 10,250 jobs per week, indicating a strengthening trend in job gains for three consecutive weeks, suggesting a gradual economic recovery.
- Data Source and Adjustments: The data comes from the NER Pulse, which is seasonally adjusted based on ADP's high-frequency data, ensuring accurate estimates of real-time employment trends and reflecting sustained demand for labor in the market.
- Historical Data Comparison: Compared to the previous week, the job additions on January 31 increased by 32% from 7,750 jobs on January 24, showcasing a robust recovery in the job market that could positively impact consumer confidence and spending.
- Future Release Schedule: The next NER Pulse will be released on February 24, 2026, with ADP Research collaborating with the Stanford Digital Economy Lab to regularly provide employment data, aiding businesses and policymakers in making more informed decisions.
See More
Market Sell-Off Drives Multiple Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
Market Sell-Off Drives Tech Stocks to 52-Week Lows
- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, highlighting its robust growth potential in payroll processing.
- Merger Prospects for AWK: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, yet its merger with Essential Utilities has shareholder approval; if regulatory approval is granted, it could help maintain long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a 21% drop in PayPal's stock price, the new CEO may consider strategic alternatives; with a current valuation below 8 times forward earnings, any proactive measures from management could trigger a rebound in stock price and restore investor confidence.
- Widespread AI Concerns: The market's apprehension regarding the potential disruptive impact of generative AI across various sectors has led to significant sell-offs, affecting not only tech stocks but also non-tech names, reflecting a cautious investor sentiment about the economic outlook.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Paycom Software's 2026 Revenue Forecast Falls Short of Expectations
- Revenue Forecast Downgrade: Paycom projects its 2026 revenue to be between $2.18 billion and $2.20 billion, falling short of analysts' average estimate of $2.23 billion, indicating a cautious approach amid macroeconomic challenges that may impact investor confidence.
- Stock Price Volatility: Paycom's shares dropped over 7% in after-hours trading as businesses delay or reduce HR and payroll software purchases due to tighter budgets, reflecting market concerns about its future performance.
- Customer Acquisition Challenges: Analysts note that macroeconomic challenges could constrain Paycom's new customer acquisition, particularly as hiring slows or layoffs occur among small and medium-sized businesses, which are crucial to its core client base.
- Intensifying Competition: The human capital management market is becoming increasingly crowded, with Paycom facing pressure from competitors like ADP, Paylocity, and Workday, which could further weaken its market share and profitability.
See More
