Is ADP a good stock to own?

ADP is a profitable business with leadership in multiple niches of the human capital management industry, which could make it a smart pick for long-term investors.

Does ADP stock pay dividends?

ADP pays dividends and increases its payout regularly. It has boosted its payout every year for 50 consecutive years.

How do you buy ADP stock?

You can buy ADP stock on any brokerage platform of your choice.

Is ADP publicly traded?

ADP is a publicly traded stock.

Who owns the most ADP stock?

The Vanguard Group owns the most shares of ADP stock, controlling more than 10% of shares outstanding.

Is ADP a good long-term investment?

ADP could be a good long-term investment for some individuals due to its robust underlying financial health, consistent growth, and solid dividend history.

How to Buy ADP Stock (ADP) | The Motley Fool

How to Buy ADP Stock (ADP)

By Rachel Warren – Updated Jan 7, 2026 at 1:01 PM EST | Fact-checked by Frank Bass

Key Points

ADP is a global leader in payroll and HR solutions, serving more than 42 million workers worldwide.
Investing in ADP stock may suit value-oriented and income-seeking investors due to consistent dividends.
ADP integrates AI in its services, enhancing capabilities in payroll, recruitment, and compliance.

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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.

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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.

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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.

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NASDAQ: ADP

Automatic Data Processing

Premium Feature

Moneyball Superscore

84/100

Today's Change

(-0.97%) $-2.59

Current Price

$265.37

Key Data Points

Market Cap

$106B

Day's Range

$265.11 - $268.30

52wk Range

$188.16 - $299.22

Volume

916.1K

Avg Vol

2.5M

Gross Margin

50.67%

Dividend Yield

2.48%

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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.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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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.

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How to invest in ADP stock through ETFs

There are many exchange-traded funds (ETFs) that provide exposure to ADP stock. An ETF can be a great way to get exposure to stocks you're interested in without holding shares of the individual stocks, providing instant diversification as you expand your portfolio holdings.

Some ETFs to consider if you decide you'd like to invest in shares of ADP stock, along with many other stocks, include SPDR S&P 500 ETF Trust (NYSEARCA:SPY), iShares Core S&P 500 ETF (NYSEARCA:IVV), and Invesco ETF Tr-Invesco QQQ Tr, Series 1 ETF (QQQ -0.34%).

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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)

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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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Investing in ADP stock FAQ

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About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

TMFRachelW

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

How to Buy ADP Stock (ADP)

Key Points

How to buy ADP stock

Should you invest in ADP stock?

NASDAQ: ADP

Key Data Points

Is ADP stock profitable?

Does ADP stock pay a dividend?

Exchange-Traded Fund (ETF)

Pros and cons of investing in ADP stock

How to invest in ADP stock through ETFs

Will ADP stock split?

The bottom line

Related investing topics

Artificial Intelligence: How AI Is Changing the Retail Industry

3 Most Important Financial Statements

Revenue vs. Profit: What's the Difference?

When to Sell Stocks: 5 Reasons to Sell a Stock

Investing in ADP stock FAQ

Is ADP a good stock to own?

Is ADP a good stock to own?

Does ADP stock pay dividends?

Does ADP stock pay dividends?

How do you buy ADP stock?

How do you buy ADP stock?

Is ADP publicly traded?

Is ADP publicly traded?

Who owns the most ADP stock?

Who owns the most ADP stock?

Is ADP a good long-term investment?

Is ADP a good long-term investment?

About the Author

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Premium Investing Services

How to buy ADP stock

Should you invest in ADP stock?

Does ADP stock pay a dividend?

Exchange-Traded Fund (ETF)

Pros and cons of investing in ADP stock

Will ADP stock split?

The bottom line

Artificial Intelligence: How AI Is Changing the Retail Industry

3 Most Important Financial Statements

Revenue vs. Profit: What's the Difference?

When to Sell Stocks: 5 Reasons to Sell a Stock

Investing in ADP stock FAQ

Is ADP a good stock to own?

Is ADP a good stock to own?

Does ADP stock pay dividends?

Does ADP stock pay dividends?

How do you buy ADP stock?

How do you buy ADP stock?

Is ADP publicly traded?

Is ADP publicly traded?

Who owns the most ADP stock?

Who owns the most ADP stock?

Is ADP a good long-term investment?

Is ADP a good long-term investment?

NASDAQ: ADP

Key Data Points

How to invest in ADP stock through ETFs