5 Best American Dividend Stocks to Buy Now

In this article, we discuss 5 best American dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their historical performance, go directly to read 11 Best American Dividend Stocks to Buy Now. 

5. Automatic Data Processing, Inc. (NASDAQ:ADP)

Dividend Yield as of October 4: 1.79%

Automatic Data Processing, Inc. (NASDAQ:ADP) is an American company that specializes in human resources management software and services. The company reported a strong cash position in the second quarter of 2022. Its operating cash flow stood at $913 million and it generated $768.6 million in free cash flow. The company’s revenue for the quarter came in at $4.13 billion, which showed an 11.6% growth from the same period last year.

On August 3, Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend of $1.04 per share, consistent with its previous dividend. The company holds a strong dividend growth history, having raised its dividends consistently for the past 47 years. As of October 4, the stock’s dividend yield was 1.79%.

In August, Mizuho raised its price target on Automatic Data Processing, Inc. (NASDAQ:ADP) to $257 with a Buy rating on the shares, calling the company’s result ‘solid across the board’. The firm also appreciated the company’s financial payments segment.

At the end of Q2 2022, 39 hedge funds tracked by Insider Monkey owned stakes in Automatic Data Processing, Inc. (NASDAQ:ADP), compared with 47 in the previous quarter. These stakes hold a collective value of nearly $2.5 billion. Fundsmith LLP was the company’s major stakeholder in Q2.