Automatic Data Processing

ADP prioritizes organic investment (cloud, AI, data, compliance) and complements it with measured M&A, notably WorkForce Software in FY25. It returned $2.8 billion in 9M FY25 via dividends and buybacks; full‑year buybacks were about $1.28 billion with roughly 4.4 million shares repurchased, and the company marked its 50th consecutive annual dividend increase.

Capex is small (≈0.8 percent of revenue), and FCF conversion is strong, enabling reinvestment and returns while keeping leverage modest. Track record on acquisitions is conservative and generally supportive of the core.