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

Automatic Data Processing, Inc. (NASDAQ:ADP) announced a quarterly dividend on Wednesday, April 8th. Stockholders of record on Friday, June 12th will be paid a dividend of 1.70 per share by the business services provider on Wednesday, July 1st. This represents a c) dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Friday, June 12th.

Automatic Data Processing has increased its dividend by an average of 0.1%per year over the last three years and has increased 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. 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 ADP stock opened at $200.78 on Thursday. The company has a 50 day moving average price of $215.21 and a 200-day moving average price of $248.42. Automatic Data Processing has a 52 week low of $197.08 and a 52 week high of $329.93. The firm has a market capitalization of $80.84 billion, a PE ratio of 19.31 and a beta of 0.85. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.05. The company had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.96% and a return on equity of 68.44%. The firm’s quarterly revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the business posted $2.35 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. As a group, equities research analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current year.

Insider Activity

In other Automatic Data Processing news, VP Brian L. Michaud sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the completion of the transaction, the vice president directly owned 15,310 shares in the company, valued at $3,585,295.80. This represents a 6.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available 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 stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares of the company’s stock, valued at approximately $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 3,158 shares of company stock valued at $766,263. Company insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Hedge funds have recently modified their holdings of the company. Heritage Wealth Management Inc. lifted its holdings in shares of Automatic Data Processing by 1.1% in the second quarter. Heritage Wealth Management Inc. now owns 3,340 shares of the business services provider’s stock worth $1,030,000 after buying an additional 35 shares in the last quarter. Fairvoy Private Wealth LLC lifted its holdings in shares of Automatic Data Processing by 4.2% in the third quarter. Fairvoy Private Wealth LLC now owns 863 shares of the business services provider’s stock worth $253,000 after buying an additional 35 shares in the last quarter. Central Pacific Bank Trust Division lifted its holdings in shares of Automatic Data Processing by 4.3% in the third quarter. Central Pacific Bank Trust Division now owns 889 shares of the business services provider’s stock worth $261,000 after buying an additional 37 shares in the last quarter. Baker Tilly Wealth Management LLC lifted its holdings in shares of Automatic Data Processing by 2.7% in the third quarter. Baker Tilly Wealth Management LLC now owns 1,431 shares of the business services provider’s stock worth $420,000 after buying an additional 38 shares in the last quarter. Finally, BSW Wealth Partners lifted its holdings in shares of Automatic Data Processing by 1.1% in the third quarter. BSW Wealth Partners now owns 3,746 shares of the business services provider’s stock worth $1,099,000 after buying an additional 39 shares in the last quarter. 80.03% of the stock is currently owned by institutional investors.

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.