Automatic Data Processing (ADP) 2012 Review

Automatic Data Processing (ADP) provides payroll and tax filing services, brokerage services, comprehensive human resource services and financial services to auto and truck dealerships.

The company has grown profits and dividends 7-14% over the last 10 years and has earned an 18-20% return on equity. While the 2008-2009 recession impacted ADP somewhat, it did very well relative to other companies. Long term, the company should continue to prosper based:

(1) the economic recovery has led to an increase in both customers and the number of checks processed,

(2) the contribution from the recent acquisitions [8 in the last year],

(3) a dedicated effort to technological upgrades,

(4) its stock buy back program.

Sonoco Products (SON) 2012 Review

Sonoco Products Co (SON) is a leading producer of paper-based tubes and cores, flexible packaging, rigid plastic containers, cylinder paperboard, composite cans, protective partitions, wire and cable reels and point of purchase displays.

The company has grown profits and dividends at a 5-6% pace over the last five years earning a 13-15% return on equity. The company should continue to grow as a result of:

(1) new product innovation. SON has raised the amount of capital spending dedicated to new product opportunities,

(2) increased focus of consumer oriented businesses,