2 Dividend Stocks to Double Up on Right Now

By Thomas Niel – Mar 16, 2026 at 2:15PM ESTKey PointsThere's still time to accumulate a position in Automatic Data Processing before sentiment fully recovers.M&A uncertainty is masking the long-term opportunity with Kimberly-Clark.With factors as wide-ranging as inflation, the rise of artificial intelligence (AI), and now geopolitics adding uncertainty to the market, it's not surprising many dividend stocks remain under pressure. This includes blue chip dividend stocks, or shares in blue chip companies with long track records of dividend growth. Some have attempted to recover, but the emergence of new reasons to be fearful has affected their near-term recovery prospects. In other situations, the macro backdrop has worsened sentiment toward stocks, primarily driven by company-specific factors. However, while a frustrating situation for investors already in these stocks, the current environment has created the opportunity to double down on these stocks or, in the case of new investors, "buy the dip." In my view, that's the situation with Automatic Data Processing (ADP +0.46%) as well as with Kimberly-Clark (KMB +1.33%). Image source: Getty Images.

Grab Automatic Data Processing while it's still out of favor Over the past year, various concerns have weighed on shares in Automatic Data Processing, better known as ADP. These issues have included concerns about slowing growth, rising unemployment, competition, and, most recently, AI disruption. After the stock's most recent big drop on the heels of the company's latest earnings release, shares have tried but struggled to bounce back. ExpandNASDAQ: ADPAutomatic Data ProcessingToday's Change(0.46%) $0.96Current Price$209.48Key Data PointsMarket Cap$84BDay's Range$207.59 - $210.9552wk Range$203.26 - $329.93Volume1.5MAvg Vol3.2MGross Margin50.43%Dividend Yield3.85% Now trading for around $213 per share, ADP is an attractive "buy the dip" dividend play for two reasons. First, this Dividend King, with over 50 years of consecutive annual dividend growth under its belt, sports a moderately high forward dividend yield of 3.2%. Moreover, ADP has increased its dividend at a relatively rapid pace over the past few years. ADP's last dividend increase, implemented last fall, was 10.1%. Second, alongside strong dividend growth potential, ADP offers ample gain potential as well. The aforementioned crop of concerns has pushed shares down to a valuation of just 18 times forward earnings. For comparison, this stock has, for most of the recent past, sported a mid-20s forward multiple. As macro and company-specific concerns fade and earnings releases remain strong, shares could eventually return to such a valuation. Kimberly-Clark is another Dividend King due for a sentiment shift Shareholders have already approved Kimberly-Clark's merger with Kenvue, but many in the market remain skeptical of the deal's prospects. Previously, there have been concerns about potential risks in Kenvue's portfolio of brands, including Tylenol. Others are skeptical whether this combination of a personal care products company with a consumer health products company will live up to the high expectations set by management. ExpandNASDAQ: KMBKimberly-ClarkToday's Change(1.33%) $1.32Current Price$100.16Key Data PointsMarket Cap$33BDay's Range$98.98 - $100.2452wk Range$96.26 - $147.12Volume70KAvg Vol5.7MGross Margin35.67%Dividend Yield5.12% All this means many doubt whether the cost and growth synergies touted in the merger press release will play out as expected. However, with cost synergy projections set so high at $2.1 billion, even partially achieving this could bode well for earnings moving forward. Continued earnings growth will enable Kimberly Clark to maintain Dividend King status. There could also be the opportunity to identify and sell off underperforming brands. This could free up capital for share repurchases, all while opening the door for Kimberly-Clark to improve its overall growth rate. Currently, Kimberly-Clark has a forward dividend yield of 3.5%. Dividend growth has averaged 3.5% over the past five years.Read NextMar 2, 2026 •By Thomas Niel3 Dividend Stocks to Double Up on Right NowJan 30, 2023 •By Courtney Carlsen3 Industry-Leading Stocks to Buy Before the Bear Market Is OverJan 10, 2023 •By Courtney CarlsenBeat the Dow Jones With This Unstoppable Dividend StockJan 18, 2021 •By James Brumley3 Dividend Stocks That Are Perfect for RetirementAug 14, 2013 •By Joe Tenebruso5 Stocks Growing Their Dividends by 10% Per YearAbout the AuthorThomas Niel is a contributing Analyst at The Motley Fool, covering publicly traded companies in the consumer goods and technology sectors. Prior to the Motley Fool, Thomas was a contributing Analyst for several online investing publications, including InvestorPlace, Seeking Alpha, and TipRanks. He also has past career experience in the accounting and government contracting industries. He holds a B.B.A. in Accounting from Marymount University. Thomas won his school's geography bee in the fifth grade, but retired from the professional geography bee circuit shortly thereafter.TMFThomasNielStocks MentionedAutomatic Data ProcessingNASDAQ: ADP$210.04(+0.73%)+$1.52Kimberly-ClarkNASDAQ: KMB$100.16(+1.33%)+$1.32KenvueNYSE: KVUE$17.72(+1.31%)+$0.23*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.