This Low-Yield Stock Deserves Income Investors’ Attention

If you’ve been following this column, you’d know that I have a special fondness for safe, high-yield stocks. In other words, there could only be one reason why I’m talking about a stock that yields less than two percent: dividend growth. You see, a company might not be a high-yield stock right now, but if it can raise that payout at a decent pace, investors who purchase the stock today would be able to earn a much higher yield on cost in a few years’ time.

Today’s chart highlights one of my favorite dividend stocks in the entire stock market: Automatic Data Processing (NASDAQ:ADP). ADP is a human capital management company headquartered in Roseland, New Jersey. If you look up the company on Yahoo! Finance or MarketWatch, you’ll see that it is not exactly a high yielder. Trading at $168.34 per share at the time of this writing, ADP stock offers an annual yield of 1.9%.

Source: Income Investors

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