The list of Dividend Kings -- stocks that have declared dividend raises at least once annually for a minimum of 50 years running -- is stuffed with familiar names. Not every company in that most regal lineup is famous, however, and there are several that regularly hike their payouts without much notice.
In recent days, two of those subtle superstars -- Automatic Data Processing (NASDAQ: ADP) and Marzetti (NASDAQ: MZTI) -- announced their latest dividend raises. Here's a bit more about both these businesses for those who may not be acquainted, along with the pertinent details of their new hikes.
1. ADP
ADP is one of the more recent Dividend Kings, as it crossed the 50-year barrier in 2024. It extended this streak to 51 in mid-November when it increased its quarterly payout by a fairly generous 10% to $1.70 per share.
ADP operates in the finance sector and is a leading provider of employer solutions, best known for its payroll and human resources services. There are a dizzying number of businesses, of every type and size, in this country. ADP is a long-standing company that has been delivering the goods for scores of them. More than a few have been clients for many years.
Given its history, prominence, and size, ADP is not a high-growth company. It is, however, a highly and reliably profitable one, with high net income according to generally accepted accounting principles (GAAP) margins. Over the last five fiscal years, said margins have landed in a narrow band between 17% and 20%. What's more, both revenue and net profit have risen in each of those years.
So far, it appears that the current 12-month stretch will produce more of the same. ADP's first quarter of fiscal 2026, reported at the end of October, saw the company boost revenue by 7% year over year to $5.2 billion, with GAAP net income moving 6% higher to $1 billion.
Companies with that kind of sustained profitability are rare. That tendency, combined with a dividend yield that's well above the average of 1.2% of all S&P 500 (SNPINDEX: ^GSPC) component stocks, makes ADP a solid and reliable income stock.
ADP's upcoming payout will be dispensed on Jan. 1, 2026, to investors of record as of Dec. 12. At the most recent closing stock price, it would yield 2.7%.
2. Marzetti
It's safe to say that Marzetti is even less of a household name than ADP. Yet it's a good bet that millions of Americans have consumed its wares. It's a food products supplier that has a portfolio of comestibles brands and provides products like dressings and sauces to popular restaurant chains such as Arby's and Chick-fil-A.