Comments on: Automatic Data Processing Inc. (ADP) Dividend Stock Analysis * http://dividendsvalue.com/4585/automatic-data-processing-inc-adp-dividend-stock-analysis/ Dividend Investing & Value Investing For A Superior Portfolio Mon, 11 Apr 2011 13:45:49 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Larry http://dividendsvalue.com/4585/automatic-data-processing-inc-adp-dividend-stock-analysis/comment-page-1/#comment-31513 Larry Fri, 21 May 2010 11:30:02 +0000 http://dividendsvalue.com/?p=4585#comment-31513 As a tax preparer, there's an amazing amount of customers who come in with W-2's produced by ADP. Their payroll services are inexpensive and available to even a small business. A very popular company from the business owner perspective. And again, just as a tax guy, I can tell you this company actually does a good job on payroll -- those W-2's are properly done, with all the correct codes in the little boxes and so forth. Competitors aren't as good. Looking at the balance sheet, I'm not really impressed. This Co. has few assets, save the huge amount of Goodwill, which I do not consider an asset, since Goodwill produces nothing (such as cash flow). However, borrowings are very small, which is refreshing to see. So, since assets are nil, buying ADP is buying earnings, cash flow, and of course, management. Seems like a good pick to me. Maybe time to buy on a dip right now. As a tax preparer, there’s an amazing amount of customers who come in with W-2′s produced by ADP. Their payroll services are inexpensive and available to even a small business. A very popular company from the business owner perspective. And again, just as a tax guy, I can tell you this company actually does a good job on payroll — those W-2′s are properly done, with all the correct codes in the little boxes and so forth. Competitors aren’t as good.

Looking at the balance sheet, I’m not really impressed. This Co. has few assets, save the huge amount of Goodwill, which I do not consider an asset, since Goodwill produces nothing (such as cash flow). However, borrowings are very small, which is refreshing to see. So, since assets are nil, buying ADP is buying earnings, cash flow, and of course, management.

Seems like a good pick to me. Maybe time to buy on a dip right now.

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