Automatic Data Processing, Inc. Plans Quarterly Dividend of $1.70 (NASDAQ:ADP)

Key Points

• ADP declared a quarterly dividend of $1.70 per share, payable October 1 to shareholders of record on September 11. The payment implies an annualized dividend of $6.80 and a yield of approximately 2.5%.
• The company has increased its dividend for 49 consecutive years, with a current earnings payout ratio of 62.5%; analysts expect the dividend to remain covered by projected earnings.
• ADP’s latest quarterly results exceeded expectations, with adjusted earnings of $2.64 per share and revenue of $5.47 billion, up 6.8% year over year.

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Stockholders of record on Friday, September 11th will be given a dividend of 1.70 per share by the business services provider on Thursday, October 1st. This represents a c) dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Friday, September 11th.

Automatic Data Processing has raised 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. Equities research analysts expect Automatic Data Processing to earn $13.47 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 50.5%.

Automatic Data Processing Trading Down 0.2%

NASDAQ ADP opened at $270.09 on Thursday. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.82. The firm has a market cap of $107.96 billion, a PE ratio of 24.69 and a beta of 0.81. The company has a 50 day moving average price of $238.87 and a 200 day moving average price of $224.57. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $310.08.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. During the same period last year, the firm earned $2.26 earnings per share. Automatic Data Processing's revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, sell-side analysts forecast that Automatic Data Processing will post 12.3 EPS for the current fiscal year.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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