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

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Wednesday, January 14th. Investors 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) dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend 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 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 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 Up 0.6%

Shares of Automatic Data Processing stock opened at $258.50 on Thursday. The firm has a market cap of $104.55 billion, a PE ratio of 25.52 and a beta of 0.86. The business’s 50 day simple moving average is $257.64 and its 200 day simple moving average is $282.05. 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 $247.18 and a 52-week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $5.18 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same period last year, the business earned $2.33 EPS. The business’s quarterly 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. On average, analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current fiscal year.

Insider Transactions at Automatic Data Processing

In related news, VP David Kwon sold 900 shares of Automatic Data Processing stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $260.00, for a total transaction of $234,000.00. Following the completion of the transaction, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total value of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. This represents a 5.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 2,249 shares of company stock valued at $589,852 in the last quarter. 0.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Automatic Data Processing

Hedge funds have recently added to or reduced their stakes in the business. Imprint Wealth LLC bought a new position in shares of Automatic Data Processing in the third quarter valued at about $25,000. Harbor Asset Planning Inc. bought a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $26,000. Mid American Wealth Advisory Group Inc. acquired a new position in Automatic Data Processing in the 2nd quarter valued at about $26,000. Howard Hughes Medical Institute bought a new position in Automatic Data Processing in the 2nd quarter valued at about $27,000. Finally, Solstein Capital LLC bought a new position in Automatic Data Processing in the 2nd quarter valued at about $28,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

About Automatic Data Processing

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.