Automatic Data Processing, Inc. (NASDAQ:ADP) Declares Dividend Increase – $1.90 Per Share

Automatic Data Processing, Inc. (NASDAQ:ADP) announced a quarterly dividend on Wednesday, November 11th. Stockholders of record on Friday, December 11th will be paid a dividend of $1.90 per share by the business services provider on Friday, January 1st. This represents a $7.60 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Friday, December 11th. This is a 11.8% increase from Automatic Data Processing’s previous quarterly dividend of $1.70.

Automatic Data Processing has increased its dividend payment by an average of 0.1% annually over the last three years and has raised its dividend every year for the last 49 years. Automatic Data Processing has a payout ratio of 62.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect Automatic Data Processing to earn $13.57 per share next year, which means the company should continue to be able to cover its $6.80 annual dividend with an expected future payout ratio of 50.1%.

Automatic Data Processing Stock Performance

ADP stock traded up $0.92 during trading hours on Wednesday, hitting $306.36. 1,596,935 shares of the stock were exchanged, compared to its average volume of 2,833,746. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $120.94 billion, a P/E ratio of 27.16, a P/E/G ratio of 2.71 and a beta of 0.77. The company has a 50-day simple moving average of $279.85 and a two-hundred day simple moving average of $242.37. Automatic Data Processing has a 12 month low of $188.16 and a 12 month high of $310.98.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping analysts’ consensus estimates of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The firm had revenue of $5.49 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same quarter last year, the company earned $2.49 EPS. The company’s revenue was up 6.1% on a year-over-year basis. On average, analysts forecast that Automatic Data Processing will post 12.38 earnings per share for the current fiscal year.

About Automatic Data Processing

Automatic Data Processing, Inc. (ADP) provides payroll processing and human resources technology and services to businesses of varying sizes. Its offerings include payroll administration, tax filing, benefits administration, workforce management, talent management, and human capital management software. ADP also provides services such as compliance support and professional employer organization solutions, which help businesses manage employment responsibilities. Its products combine software with payroll and HR services to support organizations’ workforce operations.