Automatic Data Processing

Automatic Data Processing is the largest payroll and human capital management provider in the world, serving over 1 million clients ranging from small businesses to multinational corporations. The company benefits from high switching costs, recurring subscription revenue, and the float income it earns on payroll funds held before disbursement to employees. ADP is a Dividend Aristocrat that attracts conservative investors seeking a high-quality compounder with recession-resistant cash flows.

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