How to buy ADP stock
Because ADP is a publicly traded company, you can buy shares as easily as you would any other U.S.-listed stock. If you're interested in snagging a few shares of the company, here's your step-by-step guide for how to buy ADP stock.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should you invest in ADP stock?
ADP is best suited for value- and income-oriented investors rather than those chasing high-growth stocks. As a leader in payroll and workforce management, the company benefits from recurring revenue and deep client relationships, with many customers relying on ADP to handle most of their HR needs.
The business is steadily modernizing. ADP is integrating artificial intelligence across its platform, including the launch of ADP Assist in 2024, a generative AI tool designed to streamline payroll, compliance, analytics, and other HR tasks.
ADP generates revenue through two main segments: Employer Services, which supports businesses of all sizes with payroll, benefits, compliance, and talent management, and its PEO business, which offers full-service HR outsourcing. Both operate in a large and expanding global human capital management market.
With a strong balance sheet, an asset-light model, and essential services that businesses rely on in any economic environment, ADP offers steady growth and income potential, but limited upside for investors seeking rapid expansion.
NASDAQ: ADP
Key Data Points
Is ADP stock profitable?
ADP stock is profitable. In the company's fiscal 2025 third quarter, earnings increased 5% to $1.2 billion.
Does ADP stock pay a dividend?
ADP stock does pay a dividend and has an incredibly impressive history of not only maintaining but also raising that payout. It has increased its dividend for 50 consecutive years, making it a Dividend King.
Exchange-Traded Fund (ETF)
Pros and cons of investing in ADP stock
Depending on your investing style and the goals you have for your overall portfolio, there could be numerous potential advantages to investing in ADP stock.
- ADP is a major player in its industry, with a stable and mature business model.
- Payroll and HR services are critical for businesses, creating a consistent demand for ADP's offerings, regardless of the economic climate.
- ADP has a strong record of paying and growing its dividends, which could make it attractive for income-seeking investors.
- The company is actively integrating AI into its platforms and expanding its cloud-based solutions, which could position it to remain competitive and potentially capture new market share.
There are some cons you might want to consider, too.
- ADP may not offer the explosive gain potential sought by some growth-oriented investors.
- The HR and payroll software market is competitive, which could potentially lead to pricing pressures and require ongoing investment in new features to maintain market share.
- A significant economic downturn could affect employment levels and potentially reduce the growth rate for ADP's services.
Will ADP stock split?
ADP stock has split multiple times throughout the company's history:
- May 22, 1981 (2-for-1)
- June 9, 1986 (2-for-1)
- May 1, 1991 (2-for-1)
- January 2, 1996 (2-for-1)
- January 4, 1999 (2-for-1)
- April 2, 2007 (10,000-for-9,033)
- October 1, 2014 (1,139-for-1,000)
The bottom line
The bottom line
ADP has a lot of favorable qualities as a stock. It's a leader in human capital management solutions, and benefits from a market-leading business that has survived economic highs and lows while continuing to grow revenue as well as profits. The company's impressive track record as an income stock and enviable payout ratio also make it a good stock for investors searching for extra cash to reinvest or save.
As private sector job growth expands and economic conditions continue to improve after a difficult few years, ADP's flagship businesses are well poised to benefit. This value stock could be a solid addition to a long-term investor's portfolio.
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