Automatic Data Processing, Inc. (NASDAQ:ADP) Announces $1.54 Quarterly Dividend

Key Points

• Automatic Data Processing, Inc. has declared a quarterly dividend of $1.54 per share, payable to shareholders on October 1st, with a current dividend yield of 2.0%.
• The company reported $2.26 EPS for the last quarter, exceeding analysts' expectations and indicating a 19.84% net margin with revenue of $5.13 billion.
• Automatic Data Processing has a dividend payout ratio of 56.6%, suggesting that future dividends are well-supported by earnings forecasts, as the expected earnings for the next year are $10.82 per share.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) declared a quarterly dividend on Wednesday, August 6th, RTT News reports. Stockholders of record on Friday, September 12th will be paid a dividend of 1.54 per share by the business services provider on Wednesday, October 1st. This represents a c) annualized dividend and a dividend yield of 2.0%.

Automatic Data Processing has a dividend payout ratio of 56.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect Automatic Data Processing to earn $10.82 per share next year, which means the company should continue to be able to cover its $6.16 annual dividend with an expected future payout ratio of 56.9%.

Automatic Data Processing Trading Up 0.7%

Shares of ADP stock traded up $2.20 during trading hours on Wednesday, hitting $301.64. The company had a trading volume of 1,844,034 shares, compared to its average volume of 1,760,908. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.02. The stock has a market capitalization of $122.44 billion, a PE ratio of 30.22, a price-to-earnings-growth ratio of 2.77 and a beta of 0.81. The company's fifty day moving average is $309.38 and its 200 day moving average is $305.33. Automatic Data Processing has a fifty-two week low of $258.51 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its earnings results on Wednesday, July 30th. The business services provider reported $2.26 EPS for the quarter, topping analysts' consensus estimates of $2.23 by $0.03. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm had revenue of $5.13 billion during the quarter, compared to the consensus estimate of $5.05 billion. During the same quarter in the previous year, the firm posted $2.09 earnings per share. The company's revenue was up 6.3% compared to the same quarter last year. Research analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

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