While it may seem like a simple concept, operating human resources (HR) applications, paying employees and managing benefits is actually pretty complex. Rather than develop in-house systems for this, many enterprises farm out the operations. There are a few names in the space, but our latest Best Technology Stocks Dividend List pick is one of the oldest and top stocks in the sector.
The key to our firm’s long-term wins has been its focus on small- to medium-sized businesses. Larger firms do have the resources to do some of HR and payroll management on their own. But those smaller firms with a handful of employees don’t have the luxury. That’s where our pick comes in: offering solutions to these firms.
The best part is our pick is able to make money off its float. Just like an insurance firm, our pick is able to make interest out of the cash client’s hand while waiting to be paid out.
The combination of steady fee revenue plus the boost to its payroll cash float has helped our pick survive and thrive over the long haul. In fact, our pick has been raising its dividend for more than a decade straight.
In order to make room for our HR play, we’ve removed a networking specialist from the portfolio.
You can check out the Best Technology Dividend Stocks List to explore all the stocks.
