Automatic Data Processing, Inc. (NASDAQ:ADP) is among the 14 Best Dividend Aristocrats for 2026. Jefferies downgraded ADP to Underperform due to structural headwinds, citing market saturation and larger competitors. However, ADP reported solid results in Q1 2026 with revenue and adjusted EPS growing 7%.

ADP acquired Pequity, expanding its compensation management software offerings. Known for cloud-based Human Capital Management solutions, ADP provides payroll, HR, tax, talent, and benefits administration globally. While ADP is a potential investment, some AI stocks may offer greater upside potential and less downside risk.

For those seeking investment opportunities, consider exploring the best short-term AI stock. Check out the 14 Best Pharma Dividend Stocks and 15 Global Dividend Stocks to diversify your portfolio for 2026. Disclosure: None.

Read more at Yahoo Finance: ADP Downgraded to Underperform as Jefferies Flags Structural Headwinds