5 Dividend Growth Stocks with the Highest Growth Rates

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

12-Month Dividend Growth Rate: 20%

Automatic Data Processing, Inc. (NASDAQ:ADP) is an American company that provides cloud-based HR management solutions. The company pays a quarterly dividend of $1.25 per share, having raised it by 20% in November 2022. It maintains a 48-year streak of dividend growth, which makes it one of the best dividend growth stocks on our list. The stock’s dividend yield on February 13 came in at 2.21%.

In fiscal Q2 2023, Automatic Data Processing, Inc. (NASDAQ:ADP) posted revenue of $4.4 billion, up 9.08% from the same period last year. The company generated over $1.6 billion in operating cash flow in FY22, up from $1.2 billion in 2021.

In December, Mizuho raised its price target on Automatic Data Processing, Inc. (NASDAQ:ADP) to $285 with a Buy rating on the shares, appreciating the company’s FinTech & Payments segment.

At the end of Q3 2022, 48 hedge funds tracked by Insider Monkey owned stakes in Automatic Data Processing, Inc. (NASDAQ:ADP), up from 39 in the previous quarter. These stakes are valued at over $3.7 billion collectively.

Carillon Tower Advisers mentioned Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q3 2022 investor letter. Here is what the firm has to say:

“Despite a difficult macroeconomic environment, hiring trends have remained robust and Automatic Data Processing, Inc. (NASDAQ:ADP) shares reacted positively to strong quarterly earnings and guidance that was well above consensus expectations.”