|
Good morning,
There's endless speculation about the changes AI will bring...
This speculation has caused:
- Some stocks to see enormous valuation gains
- Other stocks to see surprising valuation declines
Negative valuation reappraisals are based on future "what if" fear-based thinking.
“Be fearful when others are greedy and greedy only when others are fearful.”
– Warren Buffett
AI Fears & ADP
ADP (ADP) is a prime example.
- ADP is the largest U.S. payroll processing company based on market cap
- It's a Dividend King with 51 consecutive years of dividend increases
- EPS grew from $3.25 in 2016 to $10.01 in 2025
(A 13.3% CAGR)
- Net profit margins have been over 15% since 2009
(Highly profitable)
By virtually any metric, ADP is a truly high quality dividend growth stock. It's one of the strongest around.
Disclosure: I (Ben Reynolds) am long ADP. ADP is my most recent buy personally.
Despite its fundamental strength, shares have declined from over $320 to under $220 due mainly to AI fears.
Source: Finviz
The Specific Fears
These fears are centered around 2 points:
- AI will reduce worker counts, reducing ADP's payroll processing profits.
- AI will be able to handle some or all of the services ADP currently provides.
Both of these points are based on speculation.
- AI isn't the first technological innovation that pundits expected to greatly reduce employment.
- Instead, populations and employment have continued to rise over the long run as efficiency gains from technology improvements have only created more opportunities, not less.
I am suspicious that "this time is different".
And as someone who personally uses ADP to manage payroll, the idea of using AI to handle payroll is beyond scary.
I'd much rather trust a critical task like payroll to a tried-and-true system than something that's unproven.
Not that it's even an option to use AI to process payroll now (at least not that I've seen)...
The AI Bull Case For ADP
There's also a bull case for ADP regarding AI.
ADP is perhaps the most trusted payroll processor around. And it's the largest...
It has an enormous amount of data. AI can use this data to better fuel predictions and analytics which can be packaged and sold to businesses.
And AI efficiency gains could improve already strong margins at ADP.
Additionally, AI could improve workplace efficiency without reducing payroll counts. This would lead to a stronger economy overall, which is helpful for ADP.
In any case, AI's impact on ADP is yet to fully be seen. The world is always evolving and changing.
But ADP has proven incredibly resilient in the past and has continued to thrive through a wide variety of economic conditions. It has a wide moat and a shareholder friendly management that both pays dividends and repurchases shares.
And ADP isn't the only high quality dividend growth stock around today that is trading at a discount...
And that's where the Sure Analysis Research Database (SARD) shows its value.
The Sure Analysis Research Database
The Sure Analysis Research Database is our best and highest tier of service.
- It has everything we do at Sure Dividend.
- Our SARD team of ~15 analysts will produce 3,600+ individual quarterly reports over the next four quarters for the 900+ income securities we cover.
- Every security is analyzed over the same metrics. This way, we can compare different securities – say an MLP versus a fast-growing information technology sector dividend stock – on an "apples-to-apples" basis.
And yes, there are still high quality dividend growth stock bargains to be found, even today's generally overvalued market.
There are surprising pockets of value currently. Many truly great businesses are on sale due to AI fears and other worries.
The more investments analyzed, the better your chances of finding deeply discounted high quality dividend growth stocks.
“The person that turns over the most rocks wins the game. And that’s always been my investing philosophy.”
– Peter Lynch
Having a membership to The Sure Analysis Research Database means you have a team of investment researchers "turning over" hundreds of income securities for you, constantly looking for the best income stocks.
SARD includes the following resources to help our members invest in high quality dividend growth stocks for their retirement income portfolios:
- Massive Dividend Growth Stock Coverage
We cover 900+ income securities every quarter in Sure Analysis, over the same key metrics. See below for 3 examples of the 900+ income securities we cover:
+ Coca-Cola (KO)
+ Realty Income (O)
+ Landmark Bancorp (LARK)
- Weekly Top 10 Best-Of-The-Best Email
We send out an email each week with the 10 highest expected total return securities with "A" or "B" Dividend Risk Scores from the most recent editions of the Sure Dividend Core Newsletter, Sure Dividend High Yield Newsletter, and Sure Dividend Growth Newsletter. This email uses the recommendations from our premium newsletters, so you get a concise list of the best-of-the-best dividend growth stocks each week.
+ Example Top 10 email from December 30th, 2025
- The Sure Analysis Research Database Spreadsheet
The Sure Analysis Research Database spreadsheet is powerful. It has everything you need to quickly sort through the 900+ income securities we cover to find the best that match your needs, and avoid the worst. And, it is updated daily, so you always have up-to-date info to guide your dividend growth investing decisions.
+ Example Spreadsheet from December 31st, 2025
- The Sure Dividend High Yield Newsletter
Our most yield focused long-term dividend growth newsletter. It publishes on the 2nd Sunday of the month. Click here for a historical edition.
- The Sure Dividend Growth Newsletter
Our most growth focused long-term dividend growth newsletter. It publishes on the 3rd Sunday of the month. Click here for a historical edition.
"I ABSOLUTELY LOVE this service! It is extremely informative and helpful in winnowing down all possibilities to a few good investment ideas! I can’t see ever going without it from here on out!"
– Sure Analysis member
Why Now Is The Best Time To Upgrade To SARD
Now is the absolute best time to upgrade to the Sure Analysis Research Database because of the March 2026 Deep Discount Event.
Details are below:
- Serious Value | From $999 to $342
SARD is normally $999/year. It's a bargain at that price because SARD includes all our other premium services (previously priced separately at $755/year) and access to the Sure Analysis Research Database itself, which is by far our most valuable service. Thanks to the current deep discount event, you can join now for just $342/year.
- Never Priced This Low Again
+ We will never offer this membership at a lower price.
+ No price increases ever – always just $342/year.
- 7 Day Free Trial & 60 Day Full Refund Period
You can try SARD for 7 days. If it isn't perfect for you, just email us in the first 7 days to end your trial, and you won't pay a penny. And, you also get a full 60-day refund after your first payment.
- Deadline: March 30th, 2026, 8:00 PM CT
Once this offer expires, it’s gone for good – no exceptions. It ends in just:
Note: Enter coupon code SAVE657 if it doesn't auto apply.
Email me directly at ben@suredividend.com with any questions.
To your compounding dividend income,
Ben Reynolds
Founder, Sure Dividend
P.S. The March 2026 Deep Discount Event ends at 8:00 PM CT on 3/30/26, and Sure Analysis will never be this inexpensive again. Click here now to join the Sure Analysis Research Database annual plan with the deep discount applied, while it's still available.
|