Automatic Data Processing, Inc. (ADP) Dividends

ADP Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Automatic Data Processing Inc, the DDM model, as implemented by StockNews, implies a negative return of 36.08% relative to its current price. Digging deeper, the aspects of Automatic Data Processing Inc's dividend discount model that we found most interesting were:

• As for its position relative to other Industrials stocks that issue dividends, Automatic Data Processing Inc offers a higher dividend yield than 69.86% of them.
• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of -36.08%, based on the stock's current share price and target price based on a dividend discount model, is greater than 64.84% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Automatic Data Processing Inc bears a discount rate, according to our calculations, lower than 64.84% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).

ADP Dividends vs. Peers