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

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Wednesday, January 14th. Shareholders of record on Friday, March 13th will be given a dividend of 1.70 per share by the business services provider on Wednesday, April 1st. This represents a c) annualized dividend and a yield of 2.6%. The ex-dividend date is Friday, March 13th.

Automatic Data Processing has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 49 consecutive 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 $10.82 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 62.8%.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP opened at $260.20 on Friday. The firm has a fifty day simple moving average of $257.80 and a two-hundred day simple moving average of $281.89. Automatic Data Processing has a 52 week low of $247.18 and a 52 week high of $329.93. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $105.24 billion, a P/E ratio of 25.69 and a beta of 0.86.

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

Key Stories Impacting Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Board authorized a $6.0 billion share repurchase (?5.8% of outstanding shares). Large buyback reduces float, supports EPS, and signals management thinks shares are undervalued — a common catalyst for upward pressure on the stock. ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
• Positive Sentiment: Board declared the regular quarterly dividend of $1.70/share (payable April 1, 2026; record date March 13). The steady dividend (?2.6% yield) supports income investor demand and signals continued free-cash-flow confidence. ADP Declares Regular Quarterly Dividend
• Neutral Sentiment: Investor commentary and “bull case” pieces are circulating that outline upside from AI/data products and cost-cutting exposure; these can attract interest but are qualitative and depend on execution. Automatic Data Processing, Inc. (ADP): A Bull Case Theory
• Neutral Sentiment: ADP’s National Employment Report and macro payroll data highlight continued demand for payroll/HR services — supportive for the long-term sales pipeline but not an immediate earnings surprise. ADP National Employment Report Preliminary Estimate
• Negative Sentiment: Insider sale — VP David Kwon sold 806 shares (~$213k) on Jan 12, reducing his stake by ~6.7%. Single executive sales can be viewed negatively by some investors, though amounts are modest relative to institutional ownership. SEC Filing — David Kwon Sale
• Negative Sentiment: Insider sale — VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13, a ~5.2% reduction in his position. Like the other sale, it’s small versus ADP’s float but may be noted by short-term traders. SEC Filing — Christopher D’ambrosio Sale

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.