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

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Wednesday, January 14th. Stockholders of record on Friday, March 13th will be paid 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 is Friday, March 13th.

Automatic Data Processing has increased 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% meaning its dividend is sufficiently covered by earnings. 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 Price Performance

Shares of NASDAQ ADP opened at $259.66 on Thursday. The company has a market capitalization of $105.02 billion, a price-to-earnings ratio of 25.67 and a beta of 0.86. The business has a 50-day moving average of $257.64 and a 200-day moving average of $282.05. Automatic Data Processing has a 1-year low of $247.18 and a 1-year high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05.

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

Automatic Data Processing News Summary

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

• Positive Sentiment: Board authorizes a $6.0 billion stock buyback (up to ~5.8% of outstanding shares), which typically supports the share price and EPS by reducing float and signals management thinks shares are undervalued. ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
• Positive Sentiment: Board declared a quarterly dividend of $1.70/share payable April 1, 2026 (2.6% yield), reinforcing cash-flow stability and appealing to income-focused investors. ADP Declares Regular Quarterly Dividend
• Positive Sentiment: Recent bullish commentary and “bull case” write-ups highlight long-term growth from ADP’s HCM/payroll platform, data assets and margin expansion potential—narratives that can support investor confidence alongside the buyback/dividend news. Automatic Data Processing, Inc. (ADP): A Bull Case Theory
• Neutral Sentiment: Analyst coverage and target revisions are in flux—some firms have cut targets while others remain neutral—so broker guidance is mixed and could mute conviction unless upgrades/target raises follow. How The Story Behind Automatic Data Processing (ADP) Is Shifting With New Analyst Targets
• Negative Sentiment: Insider selling: VP David Kwon sold 806 shares (~$213k) on Jan 12, a modest reduction in his stake that some investors may read as a cautionary signal. SEC Filing — David Kwon Sale
• Negative Sentiment: Insider selling: VP Christopher D’ambrosio sold 543 shares (~$142k) on Jan 13; another small, routine sale that could be noticed by investors even though holdings remain substantial. 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.