Automatic Data Processing, Inc. (ADP) to Issue Quarterly Dividend of $1.70 on January 1st

Automatic Data Processing, Inc. (NASDAQ:ADP) announced a quarterly dividend on Wednesday, November 12th. Shareholders of record on Friday, December 12th will be paid a dividend of 1.70 per share by the business services provider on Thursday, January 1st. This represents a c) dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, December 12th. This is a 10.4% increase from Automatic Data Processing’s previous quarterly dividend of $1.54.

Automatic Data Processing has increased its dividend payment by an average of 0.1%per year 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 56.6% meaning its dividend is sufficiently covered by earnings. Equities 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 Stock Performance

Shares of NASDAQ ADP opened at $254.61 on Friday. The business’s 50-day simple moving average is $281.19 and its 200-day simple moving average is $298.91. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing has a 52 week low of $249.68 and a 52 week high of $329.93. The firm has a market cap of $102.98 billion, a price-to-earnings ratio of 25.13, a P/E/G ratio of 2.39 and a beta of 0.86.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The firm had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter in the prior year, the business earned $2.33 earnings per share. The company’s revenue was up 7.1% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. As a group, equities research analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ADP. Citigroup began coverage on Automatic Data Processing in a research report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective for the company. UBS Group cut their price target on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, September 17th. Dbs Bank raised Automatic Data Processing to a “hold” rating in a research report on Thursday, August 21st. Wells Fargo & Company lowered their price objective on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Automatic Data Processing in a research note on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $312.67.

Automatic Data Processing Company Profile

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.