Looking For More Passive Income? Dividend Stock ADP Has Raised Its Payout Every Year Since 2012

The only thing passive income investors love more than a solid dividend stock is one that consistently raises its payout. Automatic Data Processing (NASDAQ: ADP), which has increased its dividend every year since 2012, checks off both boxes. This company provides payroll, accounting, tax administration, and human resource services for an estimated 16 million workers in over 140 countries.

According to Insider Monkey, ADP provides payroll services for one out of every six workers in the U.S. ADP's massive market share has put the company in a position to expand its services beyond payroll and accounting. It has branched out from that core business to provide clients with detailed analytics about key metrics like the median salary for various jobs.

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That salary data allows ADP clients to manage payroll expenses more effectively by offering wages competitive enough to attract top talent without overpaying. It's not the only value-added service ADP offers. The company's entire operating system is cloud-based, which eliminates the need for many ADP clients to hire accounting and HR staff. That also reduces expenses because hiring fewer employees means paying less for office space.

It explains why working with ADP is a win-win for most of its clients, who can put more of their time and energy into how to grow profits instead of bean counting. It also lays the groundwork for long-term client relationships, which translate into consistent revenue for ADP shareholders. ADP's combination of market share, ability to provide ancillary services, and convenience helps explain the company's success and the numbers show it.

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ADP's strong fiscal Q2 2025 earnings report where it posted $5.05 billion in revenue, which beat consensus earnings expectations by 8%. Per-share earnings of $2.35 topped the Street's expectation of $2.29. More importantly, ADP announced it was bullish on its prospects for fiscal-year 2025. The company expects to make $20.46 billion in revenue and predicts a 25% bump in its stock price.

Some of that predicted increase has already come to fruition. ADP opened the year trading at $292.01, but it has already surged about 5% to its current price of $311.97. The dividend picture at ADP is also strong. Public filings show the company on a five-year streak of increasing dividends, which it pays quarterly. Benzinga estimates ADP's current dividend to be 1.97%.

ADP has quite a way to go before it reaches dividend aristocrat status, but the company has been paying an increased quarterly dividend since 2012. Back then, ADP shareholders earned $0.04 per quarter. Today, they're earning a much more robust $1.54. If the company hits its fiscal year 2025 projections, ADP investors will likely see even more passive income. ADP may not be as sexy as big tech, but its payouts are still very appealing. 

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Arrived Achieved A Total Return of 34.7% On Their Biggest Sale Yet — Diversify Your Monthly Income Stream With Fractional Real Estate

Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. 

In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales.

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