Automatic Data Processing, Inc. (NASDAQ:ADP) Raises Dividend to $1.90 Per Share

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Tuesday, November 10th. Stockholders of record on Friday, December 11th will be paid a dividend of $1.90 per share by the business services provider on Friday, January 1st. This represents a $7.60 annualized dividend and a dividend 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 by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 49 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 Up 0.3%

ADP opened at $306.36 on Thursday. Automatic Data Processing has a one year low of $188.16 and a one year high of $310.98. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.03 and a current ratio of 1.03. The stock’s fifty day moving average is $280.31 and its 200-day moving average is $242.61. The company has a market capitalization of $120.94 billion, a PE ratio of 27.16, a P/E/G ratio of 2.74 and a beta of 0.77.

Automatic Data Processing (NASDAQ:ADP) last announced its earnings results on Wednesday, October 28th. The business services provider reported $2.82 earnings per share for the quarter, beating the consensus estimate of $2.77 by $0.05. Automatic Data Processing had a return on equity of 77.01% and a net margin of 20.33%. The business had revenue of $5.49 billion during the quarter, compared to analysts’ expectations of $5.48 billion. During the same quarter last year, the business posted $2.49 earnings per share. The company’s quarterly revenue was up 6.1% on a year-over-year basis. On average, equities analysts predict that Automatic Data Processing will post 12.38 EPS for the current fiscal year.

Insider Activity

In other Automatic Data Processing news, VP Virginia Magliulo sold 852 shares of the business’s stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $310.01, for a total value of $264,128.52. Following the transaction, the vice president owned 14,865 shares in the company, valued at $4,608,298.65. The trade was a 5.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael Bonarti sold 6,812 shares of the firm’s stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $310.00, for a total transaction of $2,111,720.00. Following the transaction, the vice president directly owned 81,849 shares in the company, valued at approximately $25,373,190. The trade was a 7.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 50,207 shares of company stock valued at $14,522,300. 0.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Automatic Data Processing

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Automatic Data Processing during the second quarter worth $8,097,229,000. Bank of America Corp DE acquired a new stake in shares of Automatic Data Processing in the 2nd quarter valued at $1,231,175,000. Deutsche Bank AG bought a new stake in shares of Automatic Data Processing in the 2nd quarter worth about $994,937,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Automatic Data Processing by 3.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,251,447 shares of the business services provider’s stock worth $952,112,000 after purchasing an additional 129,376 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Automatic Data Processing during the 2nd quarter worth about $725,513,000. Institutional investors and hedge funds own 80.03% of the company’s stock.

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.