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Stockchase Opinions

Darren SissonsAutomatic Data ProcessingADPTOP PICKJan 13, 2020

A global leader in payroll. It is a dividend aristocrat. While the economy is relatively buoyant we will see continued growth. If you see it in a sell off then it is one to pickup. (Analysts’ price target is $177.33)
$172.26

Stock price when the opinion was issued

$216.80

As of Jun 18, 2026. Market Open.

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PAST TOP PICK

(A Top Pick Jan 13/20, Down 5%) A play in payroll in the US. The company has increased dividends for 45 consecutive years. Effectively the same as Visa in terms of payment processing. Buy when it's on sale. A great company and a core holding. Would add on weakness.

PAST TOP PICK
(A Top Pick Feb 22/19, Up 7%) Underlying metrics are very good, predictable, consistent. Raises the dividend. Structurally still a growth story.
PAST TOP PICK
(A Top Pick Feb 22/19, Up 10%) A Dividend Aristrocrat -- increasing dividends consistently for 25 years. It has a $22 billion float for salaries it pays, that they invest overnight. He continues to like it.
BUY ON WEAKNESS

non-FANG suggestion? He likes the payment processing space -- ADP, Paychex, Visa, or Mastercard. He would like to buy on a dip.

TOP PICK
45 consecutive quarters of dividend increases. It benefits from rising interest rates, but also quite insulated through the cycle as well. They are now expanding into the small to medium sized companies offering payroll services. Yield 2.1% (Analysts’ price target is $154.22)
DON'T BUY

A payroll and HR company. A fairly pricey stock. Trades at about a 40% premium to the market. 70% of their business comes from payroll services and 30% from Human Resources operations. Over the last 6-7 years, the US has produced 15 million private sector jobs, which is great for a company like this. This is now a little too rich, and a little too late to the cycle.

COMMENT

(Market Call Minute.) A lot of the money has already been made here.

TOP PICK
#1 in the business.
BUY
A very good company. Consistent performer and will continue to do well. A great long term story.
PAST TOP PICK
(Was a top pick on Aug 21. Down 17%.) Still likes. A very attractive free cash flow yield. Have bought more to cost average as it dropped.
DON'T BUY
Two competing companies have tied up the market, so growth possibilities could shrink. Pretty expensive.
TOP PICK
Tremendous size in scale, so competition is limited. Expanding. Good free cash flow.
PAST TOP PICK
(Was a top pick on Aug 2nd. Down 12%) Still likes. Ranks in the bottom third of their quantum database model. A lot of cash. Reasonable price.