Covered, fast-growing reliability. A 2.2% yield on a 62.2% payout is covered income with a strong growth record behind it: $1.70 a quarter, raised for the Jan. 1, 2026 payment for a 51st consecutive year. The last raise was 10.4%, from $1.54 to $1.70 — the fastest on this set of cards.
Key risk: Employment sensitivity — payroll and human-capital demand tracks hiring and client employment levels, so a labour-market downturn slows the revenue that funds the dividend.
Changes if: Client employment or revenue growth stalls enough to push the payout well past 62.2%, or the annual increase streak that has run 51 years is paused.
- ✓Payout-coverage check: 62.2% on a trailing basis — $6.80 indicated against trailing EPS of $10.94. Covered, with over a third of earnings retained.
- ✓Yield check: 2.2% indicated — $1.70/qtr × 4 at the $304.16 close on Oct. 23, 2026. Real, earned yield for a single stock, not a special or a return of capital.
- ✓Dividend growth check: 51 consecutive years of increases; the latest raise lifted the quarterly dividend 10.4%, from $1.54 to $1.70, for the Jan. 1, 2026 payment.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.