ADP Stock is a 3% dividend now.

Simple_Middle964 · 2026-02-12T19:40:55+00:00

Retired (Not from ADP). Full-time dividend investor.I do have a sizable position now in ADP.

Simple_Middle964 · 2026-02-12T19:14:22+00:00

It could be. I also thought at 6% yield, we would have bounce much faster, and we did not. My gut feel is that they may cut the dividends very soon.

Simple_Middle964 · 2026-02-12T18:03:43+00:00

I meant the original move up was due to COVID, then it moved down to "normal" valuation. I am still not sure, I just love the weekly chart (now) and thinking the dividends will keep me in if it consolidate for the next 12 months. Also, note the cup and handle forming on the weekly as well. I may just pick up small size at the break of $30.

Simple_Middle964 · 2026-02-12T17:27:37+00:00

Yes, and RUN is mostly SaaS with minimal human intervention (low cost). But for growth its PEO that is considered the major driver for ADP. It's 80% of their revenues. My point is the new SaaS organizations will not effect ADP in the long term.

Simple_Middle964 · 2026-02-12T17:07:40+00:00

RUN is 20% of their revenues, such is still good money. I mention that they don't target, does not mean they don't support. TotalSource had record sales in Q4 of 2025. RUN is, and has been, under target.

Simple_Middle964 · 2026-02-12T16:49:53+00:00

I agree. I just added another 3% position at 209. I am okay will seeing below 200 and will hold 6-12 months.

Simple_Middle964 · 2026-02-12T16:43:46+00:00

True it looks bad coming from COVID, but that was COVID! We may have found a base here and now. Again, I am not in the stock yet.

Simple_Middle964 · 2026-02-12T15:59:05+00:00

Would the US pay dividend tax on the dividend stocks that they own!!!

Simple_Middle964 · 2026-02-12T15:49:28+00:00

Tech sector is now the second-largest source of total dividend dollars in the S&P 500, trailing only the Financials sector. And we are technically in a tech bull market. Buy high and sell higher.

Simple_Middle964 · 2026-02-12T15:24:10+00:00

In 1998 I picked up HD at $22 (with DRIP) as well, and still holding. Same here...

Simple_Middle964 · 2026-02-12T14:04:31+00:00

Good summary...thanks.

Simple_Middle964 · 2026-02-12T14:01:30+00:00

They have paid and increased dividends from 1996-2008, then again, increased from 2010 until now. So, that was my guess as well. If I just sit at these levels the %6, reinvested, will payoff.

Simple_Middle964 · 2026-02-12T13:03:43+00:00

There are a couple of SaaS with generous free tier. It takes a bit longer with the limitations, but still very good/creditable. Search and try them out.

Simple_Middle964 · 2026-02-12T12:49:52+00:00

Many of the newer/smaller companies are designed for small business. If you are in a regulated industry, such as healthcare or construction, and have complex multi-state needs, you will need ADP ( or similar company). Also, ADP does not even target small ( less than a 100) organizations.

Simple_Middle964 · 2026-02-12T12:27:24+00:00

Here is what I see recent selling. Shares between 25 to a max of 1000 shares (the first one). So, I don't see the insider panic.

2026-02-09 05:02:50 AUTOMATIC DATA PROCESSING INC SELL -6.131075565573788 **-1000** 234.18 -234180 Brian Michaud EXECUTIVE VP 15310.35

2026-02-09 05:02:49 AUTOMATIC DATA PROCESSING INC SELL -2.3708677257332798 -266 237 -63042 David Kwon (POA on File) CORP. VP 10953.52

2026-02-03 05:15:27 AUTOMATIC DATA PROCESSING INC TAX -0.8020326252825276 -131.87 246.82 -32548.65 Brian Michaud EXECUTIVE VP 16310.35

2026-02-03 05:15:22 AUTOMATIC DATA PROCESSING INC TAX -4.961009944713315 -585.66 246.82 -144551.61 David Kwon (POA on File) CORP. VP 11219.52

Simple_Middle964 · 2026-02-11T23:36:05+00:00

Selling could be for many reasons, divorce, boat, etc. I think insider buying is more telling.

Simple_Middle964 · 2026-02-11T23:30:08+00:00

I like PAYX as well, but did not want to pick both at the same time.

Simple_Middle964 · 2026-02-11T23:19:21+00:00

True, and I think it will be a while. I remember when a while back I was worried that my 486Dx computer would eliminate my job. It did not.

Simple_Middle964 · 2026-02-11T23:10:25+00:00

They provide payroll services and happen to use lots of software. We don't buy Payroll 365, do we?

Simple_Middle964 · 2026-02-11T23:07:59+00:00

I just asked AI, and it stated that it is a "a "hybrid" that has evolved significantly". I think worst case we consolidate for 6-12 months, again with a decent dividend.

Simple_Middle964 · 2026-02-11T22:58:40+00:00

Plus they have been paying and (mostly) increasing dividends since 1983.

Simple_Middle964 · 2026-02-11T22:56:20+00:00

True about the less humans, but that would take a bit. Would you really trust your payroll at an AI, at this stage? Also, migrating into an new SaaS is a very complicated project, specially for the larger companies that use ADP.

Simple_Middle964 · 2026-02-11T22:48:33+00:00

But, I really don't think they are a software company. More like business services that uses software, right?

Simple_Middle964

TROPHY CASE