All posts by PARKERYL

The stock market is crashing right now. But one contrarian indicator suggests that stocks could be close to a major bottom – before they go on to soar about 30% over the next 12 months. 

You’ve probably heard Warren Buffett’s famous saying: “Be greedy when others are fearful.” 

Others are certainly fearful right now. According to the weekly American Association of Individual Investors (AAII) survey, ~60% of individual investors are feeling bearish on the market right now. 

Let’s put that number in context… The AAII has been conducting this survey since the late 1980s. In that time, the percentage of bearish investors in the survey has surpassed 60% only six times before. We saw surges like this twice in late 1990, twice during the 2008 financial crisis, and twice during 2022’s red-hot inflation plight. 

In other words, investor sentiment is historically negative right now. 

Who can blame them? 

We’re in the midst of the biggest global trade war in nearly a century. Layoff announcements last month spiked to their highest level since July 2020, surging 245% to 172,017. Consumer sentiment is crashing, -9.8% from January, according to the University of Michigan’s survey. Federal spending cuts are rattling the job market. One estimate for U.S. GDP growth has plunged from +2.3% last quarter to -2.8% this quarter. 

Things look bleak right now. No wonder investors feel so bearish. 

But history suggests that when investors are feeling this bearish, it is always a good time to be buying stocks… 

• Tariff uncertainty weighs on markets. President Trump has delayed tariffs on Canada and Mexico for another month, adding to market uncertainty. The Nasdaq has entered a correction, down 10%, while the dollar continues its slump.
• US dollar weakens. The dollar’s safe-haven appeal remains intact, but confidence is eroding due to Trump’s erratic policies, weaker US growth, and dovish Fed expectations. Meanwhile, US yields are underperforming G10 peers.
• US trade deficit. The US trade deficit hit a record high in January as imports surged 10% ahead of anticipated tariffs. Job cuts soared to their highest since 2020, driven by DOGE layoffs, but initial jobless claims came in below expectations
• Berlin Wall falls. Germany’s historic infrastructure and defense spending plan, coupled with the ECB’s 25bps rate cut, reinforced the rotation into Europe. The German 10-year yield surged 42bps this week, while the euro posted a 4% rally against the dollar—one of its strongest moves on record.
• Risks remain. Investors are still on edge over potential US tariffs on European goods, which could push the ECB toward continued easing. A tariff-free scenario and fiscal expansion would make a pause more justifiable.
• Stronger pound. bond yields surged as markets priced in a major fiscal shift, sending UK 10-year yields to one-month highs. The widening UK-US 10-year spread hit an 18-month high, fueling a pound rally against the struggling US dollar.

Global Macro
A week where decades happen

Confusion. Tariffs on, tariffs off, is the name of the game. US President Donald Trump has performed another reversal on tariffs, delaying duties on many goods from Canada and Mexico for a month. This is the second month-long delay Trump granted on his own tariffs and the uncertainty continues to take its toll on financial markets. The tech-heavy Nasdaq index, for example, has fallen 10% from its recent peak, defined as a market correction, whilst the US dollar is on track for its worst week in over two years. Overall, it’s a risk-off mood in which Europe is outperforming the US due to uncertainty coming from the Trump administration.

Historic. This is what European investors have eagerly been waiting for. Germany’s likely next coalition of the CDU and SPD is preparing for a major fiscal expansion, potentially widening the deficit to 4% of GDP over the next decade. While details remain unclear and implementation risks are high, the plan aims to bolster military deterrence, drive economic recovery, and reshape Germany’s lagging infrastructure. Around €500 billion could potentially be available for investment over the next ten years.

Double stimulus. European and Chinese equities have outperformed their US counterparts this week, signaling the emergence of a new macro narrative—one that favors assets in countries benefiting from both fiscal and monetary stimulus. Germany’s commitment to major defense and infrastructure spending, alongside yesterday’s ECB rate cut by 25 basis points to 2.5%, underscores this shift. The German 10-year yield has surged a historic 42 basis points this week, while the euro’s 4% rally against the dollar marks one of its strongest gains on record. However, both assets retreated slightly after the ECB’s somewhat hawkish press conference, where policymakers debated the need for further easing.

Week ahead
Inflation increase to rattle markets?

Global markets are set for another volatile week as investors assess inflation trends, central bank policies, and key macroeconomic data. The interplay between slowing growth, sticky inflation, and central bank actions remains the dominant theme, shaping expectations for interest rates and asset prices. With crucial inflation readings out of the US, a Bank of Canada rate decision, and fresh growth data from the UK and Germany, this week could provide more clarity on the direction of global monetary policy and economic resilience.

US JOLTs. The US labor market remains a crucial focus for the Fed. January’s job openings came in at 7.6M, slightly below the consensus. While still strong, a further decline in openings could hint at a cooling labor market, reinforcing expectations of future Fed rate cuts.

US Inflation data. Inflation remains the most important macro driver for markets. February’s core inflation is expected to bounce from 3.1% to 3.3%, complicating matters for policy makers at the Fed.

Bank of Canada rate decision. The BoC is expected to cut interest rates by 25 basis points to 2.75%. Investors will be closely watching the statement of the rate decision as a hawkish or dovish tilt can move markets more than the cut itself.

UK GDP. The UK economy has been on a fragile footing, and January’s GDP MoM should confirm a slowing in momentum from 0.4% to 0.1%. This weakness might increase expectations for near-term BoE rate cuts, pressuring the pound. However, persistent inflation concerns could limit downside momentum.

FX Views
Investors abandoning the dollar

USD Worst week in over two years. The US dollar has depreciated against 88% of its global peers so far in March. It’s on track for its worst week since November 2022, sliding almost 4% against a basket of major peers as investors shift focus from the inflationary impact of tariffs to the US growth risks. Macro data has been mixed this week, but overall Fed easing bets have increased, keeping US yields near 6-month lows. The dollar’s yield-driven bullish case is therefore weakening. Rate differentials with the Eurozone are the lowest in six months, helping to send the euro 4% higher versus the buck. The dollar’s status as a safe-haven asset and reserve currency won’t disappear overnight, but the global shift away from it this week has been eye-opening. The acceleration is mainly a result of Trump’s unpredictable policies undermining confidence in the dollar, but the increasing risks around stagflation are also erasing the dollar’s high growth advantage. We think the recent move may be overstretched in the very short-term, with the dollar index now in oversold territory, but it’s fair to assume we’ve probably witnessed the peak of the dollar already this year.

EUR Eyepopping surge after fiscal boost. The euro has rocketed over 4% this week versus the US dollar, recording its biggest 4-day advance in a decade. EUR/USD has blown through its 200-day moving for the first time since November 11, and touched its highest level ($1.0871) in four months. The bullish move was initially triggered by the unwinding of Trump trades as investors shifted focus onto US economic growth risks. The euro got another bullish injection when Germany and the EU unveiled huge stimulus plans in the form of defense and infrastructure spending. This sent the 10-year bund yield soaring and the German-US real rate differential jumped to its highest since September, helped also by fading ECB easing bets. In the FX options space, traders have the highest conviction in five years that more gains are in store for the euro, with some hedge funds even wagering on an additional 10% surge, which would match the path of EUR/USD in the aftermath of Trump’s first presidential term. We warn on turning too optimistic too soon though. Europe’s spending plans still need to be approved, and the tariff war has only just begun.

GBP The twofold story. Sterling has capitalised on the dollar’s weakness this week – surging 2.5% and above $1.29 – over one cent higher than its 5-year average rate. The pair has broken above key resistance levels like the closely watched 200-day and 200-week moving averages, which is a bullish signal. Moreover, in FX options markets, short-term risk reversals betting on further sterling strength have surged to their highest in around five years. Although GBP/USD has climbed into overbought zone, suggesting a correction is due, the implied probability of touching $1.30 before the end of the month has jumped to over 60% from just 14% one week ago. Elsewhere, due to the huge spending plans unveiled by Germany, sterling has fallen 2% against the euro this week – on track for its biggest weekly loss in two years. GBP/EUR downside momentum might wane at its 50-week moving average, which has been a crucial support for over a year – currently located at €1.1878. UK growth figures will be in the spotlight next week.

CHF Two more stories to tell. The Swiss franc saw significant volatility this week against both the euro and the US dollar, driven by monetary policy shifts, shifting risk sentiment, and changing rate differentials. Growing speculation that the Swiss National Bank may soon cut rates, amid Switzerland’s low inflation and recent dovish signals, put early pressure on the franc, in particular against the euro. Meanwhile, the European Central Bank’s 25bps rate cut, accompanied by a surprisingly hawkish tone, fueled a rebound in the common currency. This pushed EUR/CHF higher, as traders reassessed the likelihood of further SNB easing relative to the eurozone. At the same time, global macro uncertainty remains elevated, and the franc traditionally benefits from safe-haven flows. However, the broad-based weakness in the US dollar, combined with rising risk appetite in Europe, driven by Germany’s historic debt issuance announcement, triggered major CHF selling against the euro. As a result, EUR/CHF surged to 0.9640€ before retreating to its 50-day moving average at 0.9520€, while USD/CHF dropped around 2.5% this week, marking its worst performance since July.

CNY PBoC pledges to prevent Yuan overshooting. USDCNH has consolidated within a narrow 100-pip range (7.2371/2480), finding support at the 7.2350 level that has held through multiple tests this year. The next significant support sits at the 200-day moving average around 7.2352. Chart shows there may be potential for Yuan to strengthen given the high correlation with EUR. PBoC Governor Pan Gongsheng stated China will “resolutely” prevent yuan overshooting risks, maintaining a consistent FX policy aimed at keeping the yuan “basically stable at reasonable equilibrium.” These comments come amid criticism from US President Trump regarding China’s exchange rate practices. Pan reaffirmed China’s intent to cut reserve requirements and interest rates at appropriate times this year, coordinating with fiscal policy while using various tools to maintain sufficient liquidity. Market participants should monitor upcoming M2 money supply data, new loans figures, and Chinese total social financing for additional directional insights on USDCNH.

JPY Descending channel maintains negative USDJPY outlook. The descending channel pattern in USDJPY actually indicates a potential reversal to the downside after the current uptrend completes, supporting a continued negative outlook. Based on this technical formation, there may be potential for further fall of USDJPY to 145 handle. Next key resistance for USDJPY at 200-day EMA 151.84. BoJ Deputy Governor Uchida indicated that while determining the neutral rate remains challenging, the central bank could proceed with rate adjustments aligned with market expectations while monitoring economic responses. He emphasized that overseas developments remain a key criterion for hike timing. While Uchida views the US economy as generally balanced, he expressed caution regarding global economic uncertainties. Upcoming Japanese current account data, household spending figures, and GDP numbers will provide further directional guidance.

CAD Riding the waves of speculation. This week, the announcement of 25% tariffs on all imports from Mexico and Canada triggered notable market movements. The Canadian dollar briefly hovered above the 1.45 level against the US dollar before retreating. Interestingly, the tariffs were accompanied by USD weakness rather than strength, as markets began pricing in the potential for a U.S. economic slowdown—something not seen in the past two years. Since Monday, the USD/CAD has dropped from its weekly high of 1.454 to 1.424, fueled by renewed speculation surrounding an early resolution to trade negotiations, along with some sectors securing exemptions and another one-month delay until April 2^nd. These factors have gradually reduced the tariff-related premium weighing on the CAD.

In the near term, technical analysis highlights key support zones at the 60-day and 20-day simple moving averages (SMAs), situated at 1.435 and 1.429, respectively. Investors should also monitor the weekly low of 1.424, a critical level that aligns closely with the 20-week SMA at 1.423.

AUD Technicals signal positive AUD turn. AUSDUSD recovered from 5-year low of 0.61 and now sits at its 50-day EMA 0.6313. Technical signals turned positive with price action closing within the Ichimoku Cloud. The pair appears to be forming a cup and handle bottom pattern, a classic positive formation. This technical setup suggests AUDUSD could continue higher, with the close inside the Cloud potentially leading to a break above it. The next key resistance is at its 200-day EMA of 0.6462. The RBA minutes revealed a more balanced tone than previously thought, acknowledging inflation declined more than expected and wages growth slowed. Officials noted possible additional capacity in the labor market and placed more weight on downside economic risks than in prior assessments. While the RBA maintains inflation targeting as priority, the overall stance appears less hawkish than conveyed in February’s press conference. Watch for Westpac consumer sentiment, business confidence, and private house approvals for next directional cues.

MXN Narrow trading range. Following last Monday’s tariff confirmation, diplomatic efforts to eliminate tariffs have gained momentum. Mexican President Sheinbaum committed to bolstering security cooperation with the U.S., showcased by the extradition of 29 high-ranking drug cartel leaders. Despite this, tariff threats will likely continue to push for an earlier USMCA revision. Banxico’s dovish pivot further underlines a constrained outlook for the Mexican Peso. Rates have rallied amid renewed U.S. growth concerns, though market sentiment remains cautious about short-term risks in local assets. Friday’s MXN CPI data, released ahead of U.S. payrolls, is expected to align with the Central Bank’s projection of CPI staying below 4%, potentially paving the way for a 50-bps rate cut by month’s end.

The Peso trades just below the 20-weekly SMA at 20.37. In the short term, the 20.18 support level is crucial if USD bid resurfaces. A further drop to the 20 level appears overstretched for now.

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

As US investment declines, China and India are rapidly expanding their presence across Latin America’s key industries. 

With US investment in Latin America shrinking, China and India are seizing the opportunity to expand their economic reach in the region.

The US remains the largest foreign investor, but its stake dropped nearly 10% in 2023 alone, to 38% of the $224.6 billion total, according to the UN Economic Commission for Latin America and the Caribbean. Meanwhile, China has firmly established itself as Brazil’s top trading partner, increasing its foreign direct investment (FDI) to nearly $601 billion by 2023, while India is gaining ground in sectors ranging from energy to pharmaceuticals.

This growing influence signals a broader geopolitical shift, as the two Asian giants strengthen ties with Latin America’s resource-rich economies.

Connecting With China

China’s trade with Latin America surged from $12 billion in 2000 to $450 billion in 2023, according to the International Monetary Fund, and it is now as a primary regional trading partner and investor.

“The increase in Chinese investment stock in Latin America follows a logic of complementarity,” says Larissa Wachholz, senior fellow at the Brazilian Center for International Relations (CEBRI).

Chinese FDI stock grew from $126.3 billion in 2015 to $600.8 billion in 2023, according to data from Statista. India, despite operating at a smaller scale, has also deepened its ties with Latin America; while its contribution to FDI peaked at $49 billion in 2014, it still reached $16 billion in 2023.

The US is quickly losing ground to China, which since 2009 has become Brazil’s largest trade partner, according to both the IMF and the World Bank. As of 2023, China was the destination of 30.7% of Brazilian exports (approximately $104 billion) and was responsible for 23.7% of Brazil’s imports ($64 billion), according to the Brazil-China Entrepreneurial Council (CEBC). The US, traditionally Brazil’s top trading partner, was a distant second and is now responsible for just 18.6% of Brazil’s imports and 10.9% of its exports.

Many of the larger Chinese companies were homegrown in the years China was aggressively expanding its own infrastructure and services, notes Wachholz. While development is still growing domestically, the world’s second most populous country behind India, has reached a comfort level that allows for local companies to look outward.

“China has one big similarity with Brazil that makes investments in energy and oil attractive here,” says Wachholz. “Both are vast countries with an important hydroelectric and renewable energy matrix potential which requires long transmission lines to reach its population centers.”

Like Brazil, “China had to contend with the issue of having to transmit energy generated in distant corners through ultra-high voltage lines. This made the Chinese very efficient in all parts of the electricity cycle: generation, transmission, and distribution, which is a key necessity in Brazil. The level of complementarity in this segment alone justifies the increased appetite for Chinese investments in Brazil.”

Despite China’s renewed focus on energy in Brazil, the initial stages of the relationship date from the 1980s, when China’s State Grid first made inroads in the country, notes Mauricio Santoro, author of Brazil-China Relations in the 21st Century: The Making of a Strategic Partnership (2022).

China’s investment in Latin America goes beyond Brazilian energy projects, says Túlio Cariello, CEBC’s director of content and research.

“It’s true that China has nearly $73 billion in investment stock in Brazil alone, which,” he notes, “corresponds to one-third of its total investment in Latin America. And 75% of that amount in Brazil is indeed invested in the energy and oil sectors. But China is diversifying its portfolio in Brazil and expanding into building plants to produce electric cars via both BYD and Great Wall Motors (GWM).”

The two companies focus primarily on the Brazilian market, Cariello adds, but recognize that regional trade agreements like Mercosur will eventually serve as a platform for simplified exporting to neighboring countries.

China’s Latin American portfolio also includes commodity prospecting and purchasing while Mexico serves as a base for consumer-product plants that can more easily export into the US and Canada. And Peru attracts about 20% of regional Chinese FDI, mostly in mining: specifically, lithium and molybdenum.

“Peru has attracted an enormous amount of investment through China’s Cosco, which is building the port of Chancay north of Lima,” says Wachholz. “The port will cut maritime voyages between South America and Shanghai by roughly one week and is essential in China’s Belt and Road project.”

India’s Investments

India is increasingly augmenting its investments in Latin America, with Brazil most frequently the lauching pad, according to Leonardo Ananda, CEO of the Brazil-India Chamber of Commerce (BICC).

“Seventy percent of Indian FDI in Latin America happen in Brazil, with some sporadic investment also in Argentina, Uruguay, or Mexico,” he notes.

Tata, one of the largest Indian groups, gained its initial foothold in Latin America through a joint venture with Brazilian IT group TBA, but has since acquired the entire operation and now offers consulting services focused in technology, and outsourcing in Brazil but also in Uruguay, Argentina, Chile, and Mexico.

Tata acquired the global operations of Jaguar-Land Rover in 2008 and now produces Land Rover vehicles in Rio de Janeiro. Other Indian manufacturers followed. Royal-Enfield now produces its famous motorcycles in northern Brazil, a few kilometers away from competitor Bajaj Motors. Meanwhile, Mahindra has expanded production of its tractors and distribution to all of Brazil, with an eye to export the vehicles to other Mercosur countries.

“We foresee Indian investments in the region will increase significantly,” says Ananda. “The number of bilateral delegations visiting each country has grown exponentially since the pandemic. India and Mercosur currently have a preferential-tariffs agreement covering about 400 products that is under review since last year and will hopefully be concluded soon to allow more frictionless trade and investment between South America and India in the very near future.”

​With the cryptocurrency market being as unpredictable as it is, folks who invest are always hunting for those standout coins to toss into their portfolios. So, let’s dive into five of the top crypto coins you might wanna consider snagging right now. We’ve got a couple of fresh projects—Aureal One and DexBoss—plus some tried-and-true tokens like Litecoin, Sui, and Polkadot. Each one of these currencies brings something special to the table, offering unique features and a variety of investment opportunities. Exciting, right?

Leading Cryptocurrencies to Buy Now

1. DexBoss (DEBO)
2. Aureal One (DLUME)
3. Litecoin (LTC)
4. Sui (SUI)
5. Polkadot(Dot)

DexBoss (DEBO) – The Next Evolution in DeFi Trading

So, here we are, watching DeFi really take off, and guess what? DexBoss has popped up as a groundbreaking trading platform, aiming to make life a lot easier for folks diving into the decentralized finance world. The heart of this platform is its native token, $DEBO, which fuels everything and brings a bunch of features to attract traders, whether they’re just starting out or seasoned pros.

Now, check this out: They’ve got a total of 1 billion $DEBO tokens. Their presale is split into 17 rounds, kicking off at just $0.01 and eventually hitting about $0.0458 in the last round. That’s a pretty sweet chance for investors to see some nice returns, with a goal of raising $50 million overall.

But DexBoss isn’t just about making things easy to use. They’re also tackling key issues like liquidity problems, those pesky high transaction fees, and the lack of variety in financial products within DeFi. With their focus on improving user experience and rolling out cool features like margin trading and derivatives, DexBoss seems ready to shake up the DeFi scene. And with a launch lined up for Q2 2024, if you’re thinking about jumping into $DEBO, now could be a great time—especially with the rising buzz around DeFi.

Aureal One (DLUME) – The Future of Gaming & Metaverse

Now, let’s talk about Aureal One. This project is really finding its groove in the gaming and metaverse spaces. It’s a next-gen blockchain network, and boy, it’s known for being super fast with transactions and keeping gas fees low—definitely a win for both developers and users alike. The native currency, DLUME, is what you’ll use for transactions in the Aureal ecosystem and it’s also the in-game currency for various projects on the platform.

They’re currently in presale mode, which means there’s a chance to snag BSC tokens that you can swap for DLUME coins once the blockchain goes live. The presale is spread over 21 rounds, starting at just $0.0005 in Round 1 and gradually climbing to $0.0045 in Round 21. They’re aiming to raise $50 million in total, and the price hikes between rounds get smaller as you go, which keeps things appealing throughout.

If you hold DLUME, you’re in for some perks—like being able to stake your coins for rewards and have a say in governance decisions, which really helps build a community vibe. Plus, with Zero-Knowledge Rollups in play, Aureal One promises high scalability and low fees, making for a smooth gaming experience that could really change the metaverse landscape. Right now, DLUME tokens hover around $0.0011, which some folks see as a potential bargain.

Litecoin (LTC)

Let’s not forget Litecoin—one of the OG altcoins that’s still holding its ground in the digital currency market. It’s designed for quick and affordable transactions when compared to Bitcoin, making it a solid choice for everyday use. And guess what? Litecoin is gearing up to integrate the MimbleWimble privacy protocol, which is all about boosting its scalability and privacy features.

With its track record and ongoing improvements, Litecoin continues to be a reliable option for long-term holders and traders who are on the lookout for stability.

Sui (SUI)

Next up, we have Sui, a rising star in the blockchain world that’s all about usability and flexibility. This project is built on a framework that guarantees high throughput and low latency. It gives developers some pretty powerful tools for crafting decentralized applications (dApps).

Sui’s really grabbing attention with its strong focus on user experience and accessibility. By combining the best aspects of both Ethereum and Solana, Sui stands out as an attractive choice for anyone interested in scalable blockchain solutions.

Polkadot (DOT)

And how about Polkadot? It’s a major player in the multi-chain ecosystem, allowing different blockchains to work together seamlessly. DOT is gaining momentum as more projects take advantage of its unique parachain structure for better blockchain connectivity.

With its emphasis on interoperability and its ongoing partnerships, Polkadot is looking like a promising investment for anyone wanting to dive into a versatile and innovative blockchain network.

Conclusion

Overall, the digital currency scene is brimming with opportunities. Aureal One and DexBoss are really standing out as two high-potential investments. DexBoss is set to shake up DeFi trading with its user-friendly and advanced tools, while Aureal One is on track to change the gaming and metaverse space with its speedy, low-cost transactions.

Alongside well-established tokens like Litecoin, Sui, and Polkadot, these projects present a balanced selection for investors looking to diversify their portfolios. However, as with any investment, caution is advised. Investors should conduct their own research and consider their risk tolerance before making financial decisions in this evolving market. ​

Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.

Updated on March 5th, 2025 by Felix Martinez

Automatic Data Processing (ADP) might not be a household name, but it should be for dividend growth investors. ADP has raised its dividend each year for 50 years in a row.

ADP is a member of the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index with 25+ years of consecutive dividend increases. ADP has one of the longest streaks of dividend increases among the Dividend Aristocrats.

We have created a full list of all 69 Dividend Aristocrats, along with important metrics like P/E ratios and dividend yields, which you can download by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

ADP’s long history of dividend growth is the result of a strong business model and durable competitive advantages. This has led to domination of its core markets for decades. To quote legendary investor Warren Buffett, ADP has a wide economic moat.

This article will review ADP’s fundamentals and discuss whether the stock is currently trading at an attractive enough valuation.

Business Overview

ADP is a business outsourcing services company. It was founded in 1949 and began with a single client. In the 75 years since ADP has grown into the leading payroll and human resource outsourcing company. It has over 1 million clients in more than 140 countries worldwide.

ADP provides services to companies of all sizes, including payroll, benefits administration, and human resources management. These services are highly demanded, as companies prefer to outsource these functions to better focus on their core business activities.

ADP has a leading position across its strategic pillars and a highly diversified client list.

The company has undergone significant restructuring in recent years. In 2014, ADP spun off its human capital management business, which now trades as CDK Global (CDK).

ADP posted fiscal second-quarter earnings on January 29th, 2025. ADP reported an 8% revenue increase to $5.0 billion in Q2 FY25, with net earnings up 10% to $963 million. Adjusted EBIT rose 11% to $1.3 billion, expanding the margin to 25.2%. Diluted EPS grew 10% to $2.35. The company reaffirmed its full-year outlook, expecting 6%-7% revenue growth and 7%-9% adjusted EPS growth.

Employer Services revenue grew 8%, with a 90-basis-point margin increase, while PEO Services revenue rose 8% but saw a 140-basis-point margin decline. Interest on client funds jumped 21% to $273 million, supported by higher balances and yields. Strong new business bookings and interest in client funds drove overall growth.

For FY25, ADP expects Employer Services revenue growth of 6% – 7% and margin expansion. PEO Services revenue is projected to rise 5% – 6% despite margin pressure. Client funds interest revenue is forecasted at $1.14-$1.16 billion. ADP remains focused on sustainable growth and shareholder value.

Source: Investor Presentation

Growth Prospects

Automatic Data Processing has compounded its adjusted earnings-per-share at a rate of more than 11% per year over the last decade, which we believe it can come close to matching moving forward.

Beyond 2023, we believe the company can deliver 9% annualized growth in earnings-per-share over full economic cycles. Much of this growth is likely to be driven by the company’s Professional Employer Organization (PEO) Services segment, which continues to deliver strong growth.

Importantly, this revenue growth has been accompanied by meaningful margin expansion, which means that the segment’s growth has outsized the firm’s bottom line.

In addition, share buybacks are a low single-digit tailwind to annual EPS growth, and we expect that to continue.

Source: Investor Presentation

Two key long-term growth catalysts for ADP are continued payroll increases and expanding regulations.

The number of employees on ADP clients’ payrolls continues to grow, and we believe this will continue for the foreseeable future. Next, the increasingly complex regulatory environment creates significant compliance costs for businesses; this also helps provide ADP with long-term growth.

Competitive Advantages & Recession Performance

Many competitive advantages fuel ADP’s growth. ADP has a deep connection with its customers and enjoys a strong reputation for customer service, which helps keep customer retention very high.

ADP enjoys a tremendous scale that its competitors cannot match. As a global company, ADP is uniquely positioned to help companies with employees on multiple continents.

In addition, ADP benefits from a recession-resistant business model. ADP’s earnings-per-share during the Great Recession are shown below:

• 2007 earnings-per-share of $1.83
• 2008 earnings-per-share of $2.20 (20% increase)
• 2009 earnings-per-share of $2.39 (8.6% increase)
• 2010 earnings-per-share of $2.39 (flat)

ADP increased earnings-per-share in 2008 and 2009, which is a rare accomplishment. ADP’s continued growth during the Great Recession is because businesses still need payroll and human resource services, even during an economic downturn.

The company continued to perform relatively well in the 2020 economic downturn caused by the coronavirus pandemic. ADP remained highly profitable during the pandemic, which allowed it to maintain its streak of annual dividend increases.

The necessary nature of ADP’s services helps insulate the company from the effects of a recession. Given ADP’s size and scale, we believe it will perform well during the next recession.

Valuation & Expected Returns

We forecast adjusted earnings-per-share of approximately $9.95 for fiscal 2025. Based on the current share price of ~$310, the stock has a price-to-earnings ratio of 31.2.

We see fair value for ADP at 29 times earnings, meaning the stock appears to be overvalued. This implies a slight headwind to total returns in the coming years from valuation expansion.

If the P/E multiple expands from 31.2 to 29 over the next five years, it would decrease annual returns by 1.5% per year.

We expect ADP to grow earnings-per-share by 9% annually over the next five years. In addition, the stock has a current dividend yield of 1.9%.

The combination of earnings growth, dividends, and valuation expansion results in a total expected return of 9.4% per year over the next five years.

Given its strong fundamentals, ADP will almost certainly continue increasing its dividend for many years to come. ADP maintains a target payout ratio of 55%- 60% of annual earnings, so the payout is very safe with room to grow.

Final Thoughts

ADP is a strong business. It maintains a large list of customers and holds a top position in the industry. This gives it a wide economic “moat,” a term popularized by investing legend Warren Buffett.

Indeed, ADP’s wide moat keeps competitors at bay, leading to high profitability levels.

There should be plenty of growth going forward, both in terms of earnings and dividends. Regulations continue to become more complex.

And, as the economy expands, companies are adding employees and increasingly use ADP’s services. If a recession occurs, ADP should continue to increase its dividend, as customers will still need its services.

With an expected rate of return above 9.4%, we rate ADP stock a hold.

If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

“Generals always prepare to fight the last war, especially if they won it.”

French Prime Minister Georges Clemenceau supposedly said that during World War I.

The same applies to investing. Investors will often look at what worked before and assume it’ll keep working.

We’ve seen this happen with the dot-com bubble in the late 1990s. Investors threw money at any company with “.com” in its name, only for many of them to crash and burn. Then, in the 2000s, investors bet big on brick-and-mortar retail giants like Sears and JCPenney, missing the rise of e-commerce and Amazon.com Inc. (AMZN).

During the beginning of the AI Revolution, arguably the biggest technological shift of our time, some investors stuck with legacy tech stocks like Intel Corp. (INTC).

This was once an iconic American company. But take one look at Intel’s chart below. The chipmaker’s stock is down about 63% over the past five years.

What makes this drop even more shocking is the fact that all of Intel’s missteps happened as the AI Revolution picked up steam.

So, competitors like NVIDIA Corp. (NVDA) came along and revolutionized the semiconductor industry and become the clear-cut leader of the AI race.

Intel was fighting the last war.

Meanwhile NVIDIAsurged ahead, dominating the AI Revolution, thanks to its graphic processing units (GPUs), which proved to be far superior to CPUs (central processing units) for AI work. That’s when everything changed. All of a sudden, everyone doing AI was clamoring for NVIDIA’s chips, and the AI arms race was on.

As a result, few companies have profited from this profound shift more than NVIDIA. In my 40-plus years in this business, I’ve never seen a company as monopolistic as NVIDIA.

It’s why I went on record saying that NVIDIA is the “Stock of the Decade.” Its pace of innovation is unmatched.

But you have to wonder: How much longer can NVIDIA keep this up?

By the end of this decade, I predict the transistors in each of NVIDIA’s chips will be approaching the “atomic” level. That’s when the laws of physics will get in the way of making its chips any faster.

So, is NVIDIA fighting the “last war”?

I don’t think so.

I think NVIDIA plans to utilize quantum computing to dominate the next phase of the AI Revolution.

Now, you are going to start hearing more about quantum computing very soon. And that’s because, on March 20, NVIDIA will hold the first ever “Quantum Day” at their annual AI conference…

Or what I’m calling “Q Day.”

According to the company, it will bring together experts to consider what we should expect from quantum computing in the coming decades.

I believe this will be when NVIDIA makes its biggest announcement of the year…

And that announcement won’t just be great for NVIDIA. It’ll also be great for select “pure play” quantum computing companies that are partnering with NVIDIA.

Remember:The biggest gains will likely come from smaller “pure play” quantum computing companies.

These are the ones that could become the next NVIDIA.

So, make sure you block off your calendar for Thursday, March 13, at 1 p.m. Eastern. That’s when I’ll share all the detailsyou need to know about Q Day in a special summit – including my top pick, a small-cap stock protected by 102 patents with close ties to NVIDIA.

You can reserve your spot by clicking here.

After you’ve saved your spot, be sure to send me your biggest questions about quantum computing. I’ve already received a number of great questions, so keep them coming! You can reach us at [email protected] and use the subject line “Quantum computing questions” so that I can be sure to see each one of them.

In the meantime, to understand what’s coming, I’ll explain the ins and outs of quantum computing, including how NVIDIA is getting in on the action. It’s important to understand what quantum computing is and how it works.

Plus, I’ll share two ideas for how you can profit.

Let’s dive in…

Written by the Market Insights Team

The ‘hard reset’ theory

Kevin Ford –FX & Macro Strategist

Over the past month and a half, discussing markets without touching on politics has been nearly impossible. While we strive for agnostic analysis, it’s worth exploring some of the more speculative market narratives making waves in financial media, especially during times when events unfold rapidly, yet remain unclear and confusing.

We’ve been sifting through the noise trying to uncover signals in a very confusing U.S. trade policy. Drawing from Trump 45’s history, we’ve speculated on the potential dynamics of a regional trade war under Trump 47. Tariffs have been viewed as bargaining tools, revenue generators for Trump’s tax-cut budget, and even tied to the 51st state annexation rhetoric. We’ve also reviewed Trump’s decades-long affinity for tariffs, dating back to the ’80s and how during Trump 45 he linked market performance to his presidency popularity. Yet, one angle—more speculative than analytical—remains unexplored.

The “hard reset” theory suggests that the new U.S. administration could be intentionally engineering a slowdown. By using tariffs, they aim to curb inflation, lower interest rates, and weaken the dollar—all to create a more stable economic landscape for Trump 47’s agenda. While this theory may seem far-fetched, markets are increasingly leaning into the possibility of a slowdown. Stocks have sold off, the dollar has weakened, and expectations for 2025 Fed rate cuts are rising. Skeptics question whether the 3-D chess strategy is too intricate for Trump’s economic cabinet, citing erratic moves on trade policy, while others point to social media hints of an economic reset agenda.

The tariff saga remains as puzzling and elusive as ever, while the Loonie continues to navigate the tides of ambiguous trade policies and the weakening U.S. dollar. Treasury Secretary Scott Bessent, in coordination with the White House, has confirmed that goods compliant with the CUSMA/USMCA trade agreement will be exempt from tariffs until April 2nd. This announcement has triggered notable intraday fluctuations in the Loonie, which traded in a range of 1.437 to 1.424 yesterday. Meanwhile, the DXY index has experienced its steepest weekly decline since November 2022.

Adding to an already volatile week, today’s U.S. and Canadian employment data are set to cap off a week packed with macro data. A weaker U.S. jobs report could amplify bearish sentiment against the USD. However, the recent downward movement appears overextended, and the DXY is likely to stabilize around the 104 level. As markets wrestle with persistent uncertainty, tariffs and evolving trade narratives remain key drivers of sentiment, regardless of how implausible they may appear.

Tariff pendulum continues to swing

George Vessey – Lead FX & Macro Strategist

Tariffs on, tariffs off, is the name of the game. US President Donald Trump has performed another reversal on tariffs, delaying duties on many goods from Canada and Mexico for a month. This is the second month-long delay Trump granted on his own tariffs and the uncertainty continues to take its toll on financial markets. The tech-heavy Nasdaq index, for example, has fallen 10% from its recent peak, defined as a market correction, whilst the US dollar is on track for its worst week in over two years.

The dollar’s status as a safe-haven asset and reserve currency won’t disappear overnight, but the global shift away from it this week has been eye-opening. The acceleration is mainly a result of Trump’s unpredictable policies undermining confidence in the dollar, but also due to US growth scares and dovish Fed repricing, keeping US yields relatively stagnant compared to G10 peers. On the macro front, the US trade deficit widened to a record high in January, driven by a 10% surge in imports ahead of anticipated tariffs. Additionally, job cuts soared to their highest level since 2020, fuelled by significant layoffs at DOGE. However, initial jobless claims came in below expectations, offering some reassurance.

Today, all eyes are on the US jobs report. The data published last month showed a mixed bag for investors. Hiring slowed but wage growth ticked higher and continued the theme of “heightened inflation anxiety” driven by the tariff war and rising inflation expectations. Headline payrolls came in at 143k, below the 175k consensus. However, upward revisions to the past two months added 100k jobs, and the unemployment rate held at 4.0%. As for today, 170,000 new jobs are expected to have been added in February whilst the unemployment rate is seen holding steady at 4%.

European outperformance rests on stimulus

Boris Kovacevic – Global Macro Strategist

European and Chinese equities have outperformed their US counterparts this week, signaling the emergence of a new macro narrative—one that favors assets in countries benefiting from both fiscal and monetary stimulus. Germany’s commitment to major defense and infrastructure spending, alongside yesterday’s ECB rate cut by 25 basis points to 2.5%, underscores this shift.

The German 10-year yield has surged a historic 42 basis points this week, while the euro’s 4% rally against the dollar marks one of its strongest gains on record. However, both assets retreated slightly after the ECB’s somewhat hawkish press conference, where policymakers debated the need for further easing. Markets now assign a 50% probability to another rate cut in April. The ECB remains data-dependent, but divisions persist over the neutral rate, with slowing disinflation and stronger growth potentially limiting further cuts. Equity outperformance rests on both the fiscal and monetary support continuing in Europe. The hawkish ECB statements explains why the STOXX 600 is on track to record its first loss in ten weeks.

The ongoing tariff saga adds another layer of uncertainty. The Trump administration’s latest delay on Canadian and Mexican tariffs leaves markets guessing about potential levies on European goods—an outcome that could push the ECB toward continued easing, while a tariff-free environment and fiscal expansion would make a pause more justifiable. EUR/USD has found its resistance at the $1.0850 mark and is now dependent on a weak US nonfarm payrolls report to reclimb its weekly high again.

Pound firm versus dollar, fragile versus euro

George Vessey – Lead FX & Macro Strategist

The pound remains buoyant versus the US dollar near $1.29, one cent higher than its 5-year average rate. However, due to the huge spending plans unveiled by Germany and the EU and surging European yields, sterling has wilted 2% against the euro this week so far – on track for potentially its biggest weekly loss in two years. GBP/EUR downside momentum might wane at its 50-week moving average, which has been a crucial support for over a year – currently located at €1.1878.

On the macro front this week, the final UK PMI figures confirmed the private sector economy grew modestly in February. The services PMI was revised lightly lower but still beat initial estimates of 50.8 and offsetting the decline in manufacturing. Late last month, we also saw a leading indicator for UK GDP growth hit its highest level since 2017. That said, the British Chambers of Commerce yesterday slashed its forecast for the UK economy due to the tax and trade “double whammy” afflicting UK businesses. But due to the the deteriorating US growth outlook as well, the growth rate differential is narrowing between the US and UK. It’s also led to a sharp increase in the UK-US rate differential as more Fed cuts are priced in. Both factors have contributed to the pound’s latest upswing versus the dollar.

Sterling has climbed into overbought territory versus the dollar, but the implied probability of GBP/USD touching $1.30 before the end of the month has jumped to over 60% from just 14% one week ago, according to FX options market pricing. Moreover, traders have the highest conviction in five years that more gains are in store for the pound over the coming weeks, though gains will be constrained from 1-month onwards due to elevated uncertainty in trade and foreign policy globally.

DXY finds support at 104 after its worst week in 2 years

Table: 7-day currency trends and trading ranges

Key global risk events

Calendar: March 03-07

All times are in ET

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Is the dollar the right answer for the region? 

During his campaign, Argentine President Javier Milei promised to close the country’s central bank and adopt the dollar as the country’s currency. Once elected, he changed his strategy. The natural dollarization approach involves restrictions on the supply of pesos, forcing Argentines to use their dollar reserves to pay for everyday expenses.

With the peso stabilized, inflation reached 117% in December 2024, down from 292% from the year’s high in April, and the use of the dollar is expected to increase, including for day-to-day transactions. “Argentina is now counting with two official currencies, and Milei is counting on people’s savings in dollars to increase the American currency in a local economy,” says José Leoni, managing director of corporate consultancy Moneyminds Partners.

According to Leoni, dollarization should be a temporary solution, as the main economic problems are not solved by controlling only the currency emissions. The government accounts are in dollars, and insufficient savings exist to pay these debts. “It might not provide enough resources for the economy, and this measure doesn’t solve all the issues,” says Leoni.

According to Fábio Giambiagi, a researcher at the Brazilian Institute of Economics, a unit of the Getulio Vargas Foundation, there is no proper way to implement dollarization. “Argentina does not have the reserves to make this transition; and without dollars, there is no dollarization,” he adds. “Counting on personal savings for a government measure is not currency replacement.”

Eduardo Borensztein and Andrew Berg, the authors of “Full Dollarization: The Pros and Cons,” published in 2000 by the International Monetary Fund (IMF), examine potential advantages and disadvantages of full dollarization from the perspective of any hard-currency country. They reveal that dollarization may appear more radical than it is: the use of the US dollar or another major currency is pervasive to some degree in most developing countries, particularly in financial contracts.

“The main attraction of full dollarization is the elimination of the risk of a sudden, sharp devaluation of the country’s exchange rate,” the IMF writers point out. “This may allow the country to reduce the risk premium attached to its international borrowing. Dollarized economies could enjoy a higher level of confidence among international investors, lower interest rate spreads on their international borrowing, reduced fiscal costs, and more investment and growth.”

Latin American Experience

This is hardly new. Panama was the first country in Latin America to adopt the US dollar, in 1904, shortly after independence from Colombia. Almost a century later, Ecuador and El Salvador followed suit, with Ecuador switching in 2000 and El Salvador in 2001. But are they taking the proper steps to control their economies?

According to Brazilian economist Otaviano Canuto, a former vice president of the World Bank and senior fellow at the Policy Center for the New South, it makes sense for some of the smaller economies in Latin America, such as Panama, El Salvador, and Ecuador, to use dollars officially to keep the economy under control. “Panama’s economy does lots of transactions in dollars on its canal, with container ports and flagship registry,” he says, describing this as a natural path.

Dollarization can make imports cheaper and exports more expensive, depending on the price relationship with other currencies. Thus, the prices of imported goods tend to be more stable, but local goods and services may increase, especially if domestic demand rises.

Since Panama’s 1904 adoption of the US dollar, the country’s local currency, the balboa, has circulated side by side with the dollar. This was intended to maintain economic stability and open the economy to trade.

Ecuador experienced a significant reduction in inflation and volatility after dollarization in 2000. World Bank data indicates that inflation reached 96.1% in 2000, then decreased to an average of 2.6% from 2004-2007. However, the country still faces challenges related to its dependence on remittances and commodity exports. “The country controls its inflation and counts on foreign currency reserves, so inflation was controlled. Oil production also helped stability,” says Canuto.

However, there are pros and cons. The World Bank says the authors of its 2024 report, Ecuador: Growing Resilient for a Better Future, “found that key structural barriers to growth include widespread market intervention, a lack of competition, limited trade integration and rigid labor regulation. The country also may face sectoral constraints that prevent it from exploiting opportunities in sectors where it already has comparative advantages, such as sustainable mining, agriculture, and tourism.”

In El Salvador, employing two currencies—the colón and the dollar—makes sense since a large expatriate population lives in the US, and dollars circulate in the economy regularly. Inflation wasn’t high in 2001, about 3.75%, but personal remittances accounted for 15.7% of GDP. After dollarization, this rate increased to 21.8% by 2006 and was 24.1% in 2023, according to World Bank data. However, the country still faces economic challenges, such as low productivity and dependence on remittances, that can impact price dynamics.

Pros And Cons

Emilio Ocampo was an economic adviser to Milei during the 2023 presidential campaign and the designer of a dollarization blueprint for Argentina. Ocampo is also a professor of finance at Buenos Aires’ University of CEMA. He explains that the most important factor is which currency the people in that particular country prefer to use. “In the case of Argentina, the preference is clearly for the US dollar despite not having legal tender status,” he notes. “It is difficult to force people to accept a currency they don’t want to use, like in El Salvador [where the government] tried to impose bitcoin and it backfired.”

Dollarization is an economic reform with a strong political component. On the one hand, it limits the government’s maneuvering room by preventing it from printing banknotes to finance fiscal spending. On the other hand, dollarization makes the country’s government dependent on the decisions made by the US regarding monetary policy. In fact, by adopting the dollar, countries lose the ability to implement independent monetary policies.

Although inflation may be controlled, dollarized countries must effectively manage their fiscal policies. Inflationary pressures may arise if a healthy fiscal balance is not maintained.

​Everyone wants to invest in the top cryptos to buy before they moon. If you’re searching for these cryptos, March 2025 might be the moment for three coins—RCO Finance (RCOF), Solana (SOL), and Sui (SUI). These tokens have strong backers, growing use cases, and massive hype. Could they soar 1,000x? Let’s find out!

RCO Finance

Imagine a world where you no longer second-guess every crypto trade. Instead of relying on gut feelings, you have a system that watches the market closely and gives precise advice at the right time. This is what RCO Finance’s Robo Advisor offers—an intelligent tool designed to help investors make informed decisions.

Unlike platforms that give random tips, this AI-powered advisor works like a market guide. It tracks price movements in real-time and maps out strategies. 

Think back to Solana’s 2021 surge, when it jumped from $1.50 to nearly $260. Many traders either missed out, got in too late, or held on too long. If this tool had been available then, it could have helped them buy early and exit at the right time.

The Alpha platform is almost ready and will bring major upgrades to the Robo Advisor. This system doesn’t just follow trends—it understands them. By breaking down market patterns, it allows users to act with confidence instead of guessing. The goal is to make trading easier and more profitable for everyone.

Beyond AI-driven insights, RCO Finance opens the door to over 120,000 assets across 12,500 categories. This wide selection helps investors build strong, diverse portfolios rather than relying on a single bet. 

For those who value privacy, the SolidProof-audited platform also offers a KYC-free experience, letting users trade without long verification processes.

For investors looking to grow their holdings, RCOF token staking is another big advantage. By staking their tokens, users can earn rewards, making it a great option for long-term supporters. The Beta platform is already live, with AI tools that are constantly being updated for top security and performance.

Solana

Mert Mumtaz, a founding member of Helius Labs, believes Solana has the potential to reach a market value of over $1 trillion by the end of the decade. He predicts that the coin’s price could rise past $500, which would be a massive gain of more than 200% from its current levels. 

His confidence comes from the network’s strong performance, especially in on-chain activity and revenue growth. Also, SOL has been performing recently, as it has surged by 25.70% in the past week to trade at $178.50 according to data.

These numbers suggest that Solana is becoming a major force in the blockchain world. As its ecosystem expands, the case for long-term price growth becomes even stronger. Some analysts believe that if this trend continues, the $1 trillion goal may not be far-fetched. According to them, this makes SOL one of the top cryptos to buy.

Sui

Sui is a digital money system that runs on a proof-of-stake network. It allows people to build apps that are safe, fast, and work without a central authority.

This network uses a special way to agree on transactions. It also has a design that lets it handle a lot of activity quickly. This means people can send and receive digital money without long waits.

Meanwhile, it has started to regain momentum after the recent market dip. SUI is now trading at $3.20, a 13.07% rise in its price from the past week. Investors are now growing increasingly bullish on SUI as one of the top cryptos to buy.

Your Chance for 1000x Gains: RCO Finance is One of the Leading Cryptos to Buy!

Crypto investors are excited about RCO Finance because of its use of artificial intelligence. Many believe it offers better opportunities than well-known projects like Solana and Sui. The project’s approach has caught the attention of traders looking for the top cryptos to buy.

More than 10,000 new users have joined the RCO Finance community. The presale has already raised over $13.5 million, even though it’s only in the fifth round. This strong demand shows growing interest in the project.

Right now, an RCOF token costs $0.100. When the next presale stage begins, the price will increase to $0.130. Experts say the price will keep climbing until it reaches between $0.40 and $0.60 after listing.

Some analysts predict the token’s value could increase 1000 times. That means a $100 investment today might turn into more than $100,000 by early 2026. This kind of growth potential makes RCO Finance one of the top cryptos to buy.

With so much interest and strong predictions, many investors are joining the presale. Looking for high returns? This as an opportunity they don’t want to miss.

For more information about the RCO Finance Presale:

Visit RCO Finance Presale

Join The RCO Finance Community ​

Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.

Updated on March 6th, 2025 by Bob Ciura

“KISS” stands for Keep It Simple Stupid.

The “Stupid” part isn’t meant to be an insult. It’s a reminder that smart people can make “stupid” mistakes when things are over-complicated.

“Simplicity is the ultimate sophistication”​
– Attributed to Leonardo Da Vinci

Retirement investing should be kept simple in order to minimize mistakes. At its core, retirement investing is all about creating passive income.

At Sure Dividend, we focus on dividend-paying stocks to build a growing passive income stream.

One way for investors to find great dividend stocks is to focus on those with the longest histories of raising dividends.

With this in mind, we created a downloadable list of over 130 Dividend Champions, which have increased their dividends for over 25 consecutive years.

You can download your free copy of the Dividend Champions list, along with relevant financial metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the link below:

 

Investors are likely familiar with the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index with 25+ consecutive years of dividend increases.

Meanwhile, investors should also familiarize themselves with the Dividend Champions, which have also raised their dividends for at least 25 years in a row.

While their length of dividend increases is the same, leading to some overlap, there are also some important differences between the Dividend Aristocrats and Dividend Champions.

As a result, the Dividend Champions list is much more expansive. There are many high-quality Dividend Champions that are not included on the Dividend Aristocrats list.

This article will discuss 10 Dividend Champions that are ideal candidates for investors looking to keep investing simple with high-quality dividend stocks.

Table of Contents

The 10 stocks below have all increased their dividends for over 25 years, with Dividend Risk Scores of ‘C’ or higher. In addition, they have dividend payout ratios below 70% which indicates dividend sustainability.

Lastly, the 10 stocks have dividend growth rates above 5%.

You can instantly jump to any specific section of the article by clicking on the links below:

The 10 KISS stocks have been ranked by expected total annual return over the next five years, from lowest to highest.

KISS Stock #10: Tennant Co. (TNC)

• 5-year expected returns: 12.3%

Tennant Company is a machinery company that produces cleaning products and that offers cleaning solutions to its customers.

In the US, the company holds the market leadership position in its industry, but the company also sells its products in more than 100 additional countries around the globe.

Source: Investor Presentation

Tennant Company reported its fourth quarter earnings results on February 19. Revenues of $328 million during the quarter, which was 6% more than the top line number from the previous year’s quarter.

This was slightly better than the recent trend, as revenue had grown less on a year-over-year basis during the previous quarter.

Tennant Company generated adjusted earnings-per-share of $1.52 during the fourth quarter, which was less than what the analyst community had forecast, and which was down compared to the previous year.

Management is forecasting that adjusted earnings-per-share will fall into a range of $5.70 to $6.20 in 2025.

Click here to download our most recent Sure Analysis report on TNC (preview of page 1 of 3 shown below):

KISS Stock #9: Sysco Corp. (SYY)

• 5-year expected returns: 13.5%

Sysco Corporation is the largest wholesale food distributor in the United States. The company serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities.

Source: Investor Presentation

On January 28th, 2025, Sysco reported second-quarter results for Fiscal Year (FY)2025. The company reported a 4.5% increase in sales for the second quarter of fiscal year 2025, reaching $20.2 billion.

U.S. Foodservice volume grew by 1.4%, while gross profit rose 3.9% to $3.7 billion. Operating income increased 1.7% to $712 million, with adjusted operating income growing 5.1% to $783 million. Earnings per share (EPS) remained at $0.82, while adjusted EPS grew 4.5% to $0.93.

The company reaffirmed its full-year guidance, projecting sales growth of 4%-5% and adjusted EPS growth of 6%-7%.

Click here to download our most recent Sure Analysis report on SYY (preview of page 1 of 3 shown below):

KISS Stock #8: Target Corp. (TGT)

• 5-year expected returns: 13.5%

Target was founded in 1902 and now operates about 1,850 big box stores, which offer general merchandise and food, as well as serving as distribution points for the company’s e-commerce business.

Target posted third quarter earnings on November 20th, 2024. Third quarter revenue was $25.67 billion, up 1.1% year-over-year, but missing estimates by $230 million. Adjusted earnings-per-share came to $1.85, which missed estimates by a staggering 45 cents, or 20%.

For Q3, comparable sales were up just 0.3%, missing estimates of 1.5%. Guest traffic was up 2.4% in the quarter while digital comparable sales rose 10.8%. Gains there were led by Target Circle 360 and Drive Up.

Operating margin was 4.6% of revenue, down from 5.2% a year ago. Gross margins were off 20 basis points to 27.2% of revenue, reflecting higher digital fulfillment and supply chain costs.

Click here to download our most recent Sure Analysis report on TGT (preview of page 1 of 3 shown below):

KISS Stock #7: Bank OZK (OZK)

• 5-year expected returns: 13.8%

Bank OZK is a regional bank that offers services such as checking, business banking, commercial loans and mortgages to its customers in Arkansas, Florida, North Carolina, Texas, Alabama, South Carolina, New York and California.

On January 2nd, 2025, Bank OZK announced a $0.42 quarterly dividend, representing a 2.4% raise over the last quarter’s payment and a 10.5% raise year-over-year. This marked the company’s 58th consecutive quarter of raising its dividend.

In mid-January, Bank OZK reported (1/16/25) results for the fourth quarter of 2024. Total loans and deposits grew 13% each over the prior year’s quarter. Net interest income grew 2% over the prior year’s quarter, despite higher deposit costs.

Earnings-per-share grew 4%, from $1.50 to a new all-time high of $1.56, and exceeded the analysts’ consensus by $0.11. Bank OZK has exceeded the analysts’ consensus in 17 of the last 19 quarters and has posted record earnings-per-share for 9 consecutive quarters.

Management expects a recovery of net interest margin from mid-2025 thanks to lower interest rates and deposit costs.

Click here to download our most recent Sure Analysis report on OZK (preview of page 1 of 3 shown below):

KISS Stock #6: Becton Dickinson & Co. (BDX)

• 5-year expected returns: 13.8%

Becton, Dickinson & Co. is a global leader in the medical supply industry. The company was founded in 1897 and has 75,000 employees across 190 countries.

The company generates about $20 billion in annual revenue, with approximately 43% of revenues coming from outside of the U.S.

On February 5th, 2025, BD released results for the first quarter of fiscal year 2025, which ended December 31st, 2024. For the quarter, revenue increased 9.8% to $5.17 billion, which was $60 million more than expected.

Source: Investor Presentation

On a currency neutral basis, revenue improved 9.6%. Adjusted earnings-per-share of $3.43 compared favorably to $2.68 in the prior year and was $0.44 ahead of estimates.

For the quarter, U.S. grew 12% while international was up 6.7% on a reported basis. Excluding currency, international was higher by 6.3%. Organic growth was up 3.9% for the period.

The Medical segment grew 17.1% organically to $2.62 billion, mostly due to gains in Mediation Management Solutions and Medication Delivery Solutions. Life Science was up 0.5% to $1.3 billion.

Click here to download our most recent Sure Analysis report on BDX (preview of page 1 of 3 shown below):

KISS Stock #5: SEI Investments Co. (SEIC)

• 5-year expected returns: 13.9%

SEI Investments was founded in 1968 and over the last 50+ years has grown into a global provider of investment processing, investment management, and investment operations solutions for financial institutions and advisors.

SEI has about $1.6 trillion combined in assets under administration and management. The company should produce about $2.3 billion in revenue this year.

SEI posted fourth quarter and full-year earnings on January 29th, 2025, and results were mixed. Revenue soared 15% year-on-year to $557 million, beating estimates narrowly.

Adjusted earnings-per-share came to $1.19, missing estimates by a penny. Earnings were up 31% from the year before.

Management noted reduced earnings in Q4 from higher incentive compensation, the timing of stock-based compensation, and forex translation. Despite this, earnings in Q4 were very near a record for SEIC.

Consolidated operating income soared 43% year-over-year on strong revenue and expense management, with each segment seeing higher profits.

Click here to download our most recent Sure Analysis report on SEIC (preview of page 1 of 3 shown below):

KISS Stock #4: Nordson Corp. (NDSN)

• 5-year expected returns: 14.1%

Nordson was founded in 1954 in Amherst, Ohio by brothers Eric and Evan Nord, but the company can trace its roots back to 1909 with the U.S. Automatic Company.

Today the company has operations in over 35 countries and engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials, with applications ranging from diapers and straws to cell phones and aerospace.

Source: Investor Presentation

On December 11th, 2024, Nordson reported fourth quarter results for the period ending October 31st, 2024. For the quarter, the company reported sales of $744 million, 4% higher compared to $719 million in Q4 2023, which was driven by a positive acquisition impact, and offset by organic decrease of 3%.

Industrial Precision saw sales decrease by 3%, while the Medical and Fluid Solutions and Advanced Technology Solutions segments had sales increases of 19% and 5%, respectively.

The company generated adjusted earnings per share of $2.78, a 3% increase compared to the same prior year period.

Click here to download our most recent Sure Analysis report on NDSN (preview of page 1 of 3 shown below):

KISS Stock #3: PPG Industries (PPG)

• 5-year expected returns: 14.8%

PPG Industries is the world’s largest paints and coatings company. Its only competitors of similar size are Sherwin-Williams and Dutch paint company Akzo Nobel.

PPG Industries was founded in 1883 as a manufacturer and distributor of glass (its name stands for Pittsburgh Plate Glass) and today has approximately 3,500 technical employees located in more than 70 countries at 100 locations.

On January 31st, 2025, PPG Industries announced fourth quarter and full year results for the period ending December 31st, 2024. For the quarter, revenue declined 4.6% to $3.73 billion and missed estimates by $241 million.

Adjusted net income of $375 million, or $1.61 per share, compared favorably to adjusted net income of $372 million, or $1.56 per share, in the prior year. Adjusted earnings-per-share was $0.02 below expectations.

Source: Investor Presentation

For the year, revenue from continuing operations decreased 2% to $15.8 billion while adjusted earnings-per-share totaled $7.87.

PPG Industries repurchased ~$750 million worth of shares during 2024 and has $2.8 billion, or ~10.3% of its current market capitalization, remaining on its share repurchase authorization. The company expects to repurchase ~$400 million worth of shares in Q1 2025.

For 2025, the company expects adjusted earnings-per-share in a range of $7.75 to $8.05.

Click here to download our most recent Sure Analysis report on PPG (preview of page 1 of 3 shown below):

KISS Stock #2: SJW Group (SJW)

• 5-year expected returns: 17.8%

SJW Group is a water utility company that produces, purchases, stores, purifies and distributes water to consumers and businesses in the Silicon Valley area of California, the area north of San Antonio, Texas, Connecticut, and Maine.

SJW Group has a small real estate division that owns and develops properties for residential and warehouse customers in California and Tennessee. The company generates about $750 million in annual revenues.

Source: Investor Presentation

On February 27th, 2025, SJW Group announced fourth quarter and full year results for the period ending December 31st, 2024. For the quarter, revenue improved 15.5% to $197.8 million, which topped expectations by $10.3 million.

Earnings-per-share of $0.74 compared favorably to earnings-per-share of $0.59 in the prior year and was $0.19 ahead of estimates. For the year, revenue grew 12% to $748.4 million while earnings-per-share of $2.87 compared to $2.68 in 2023.

Click here to download our most recent Sure Analysis report on SJW (preview of page 1 of 3 shown below):

KISS Stock #1: Stepan Co. (SCL)

• 5-year expected returns: 19.9%

Stepan manufactures basic and intermediate chemicals, including surfactants, specialty products, germicidal and fabric softening quaternaries, phthalic anhydride, polyurethane polyols and special ingredients for the food, supplement, and pharmaceutical markets.

It is organized into three distinct business lines: surfactants, polymers, and specialty products. These businesses serve a wide variety of end markets, meaning that Stepan is not beholden to just a handful of industries.

Source: Investor presentation

The surfactants business is Stepan’s largest by revenue, accounting for ~68% of total sales in the most recent quarter. A surfactant is an organic compound that contains both water-soluble and water-insoluble components.

Stepan posted fourth quarter and full-year earnings on February 19th, 2025, and results were mixed once again. Revenue was down 1.2% year-on-year to $526 million, but did beat estimates by almost $5 million. Adjusted earnings-per-share came to 12 cents, which missed estimates by 21 cents.

Global sales volume was off 1% year-over-year as double-digit growth in surfactants was offset and then some by demand weakness in polymers. Surfactants were up 3% year-over-year in Q4 to $379 million. Polymer net sales fell 12% to $130 million.

The company managed to generate about $13 million in pre-tax cost savings during the quarter, and about $48 million for the full year.

Click here to download our most recent Sure Analysis report on SCL (preview of page 1 of 3 shown below):

Final Thoughts

In order for a company to raise its dividend for at least 25 years, it must have durable competitive advantages, highly profitable businesses, and leadership positions in their respective industries.

This is why the Dividend Champions are attractive for long-term investors.

Plus, quality dividend growth stocks allow investors to simply their investing process, with a buy-and-hold approach that can create wealth over the long-run.

Additional Reading

The Dividend Champions list is not the only way to quickly screen for stocks that regularly pay rising dividends.

• The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 54 stocks with 50+ years of consecutive dividend increases.
• The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
• The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.