Automatic Data Processing, Inc. (ADP) to Issue Quarterly Dividend of $1.90 on January 1st

Automatic Data Processing, Inc. (NASDAQ:ADP) announced a quarterly dividend on Tuesday, November 10th. Investors of record on Friday, December 11th will be given 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 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 raised its dividend payment by an average of 0.1% per year over the last three years and has raised its dividend annually for the last 49 consecutive years. Automatic Data Processing has a dividend 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

Automatic Data Processing stock opened at $306.36 on Thursday. The stock has a 50-day simple moving average of $280.31 and a 200 day simple moving average of $242.61. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.98. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $310.98. The stock has a market capitalization of $120.94 billion, a price-to-earnings ratio of 27.16, a P/E/G ratio of 2.74 and a beta of 0.77.

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

Analyst Ratings Changes

Several analysts recently commented on the company. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $290.00 price objective on shares of Automatic Data Processing in a research note on Thursday, October 29th. Weiss Ratings upgraded Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, September 22nd. Guggenheim reaffirmed a “buy” rating and set a $340.00 price objective on shares of Automatic Data Processing in a research report on Thursday, October 29th. BMO Capital Markets increased their price objective on Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a report on Wednesday, July 29th. Finally, Citigroup lifted their target price on Automatic Data Processing from $287.00 to $295.00 and gave the company a “neutral” rating in a research report on Thursday, October 29th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Automatic Data Processing has an average rating of “Hold” and an average price target of $285.00.

Automatic Data Processing Company Profile

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.