Automatic Data Processing, Inc. (NASDAQ:ADP) Plans Quarterly Dividend of $1.90

Automatic Data Processing, Inc. (NASDAQ:ADP) announced a quarterly dividend on Wednesday, November 11th. Shareholders 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 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend 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% per year over the last three years and has raised 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 Performance

ADP stock traded up $0.92 during trading on Wednesday, hitting $306.36. 1,596,935 shares of the company’s stock traded hands, compared to its average volume of 2,833,746. The stock has a market capitalization of $120.94 billion, a price-to-earnings ratio of 27.16, a price-to-earnings-growth ratio of 2.71 and a beta of 0.77. Automatic Data Processing has a 52 week low of $188.16 and a 52 week high of $310.98. The stock has a fifty day moving average price of $279.85 and a two-hundred day moving average price of $242.37. 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 (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, October 28th. The business services provider reported $2.82 EPS for the quarter, topping the consensus estimate of $2.77 by $0.05. The business had revenue of $5.49 billion during the quarter, compared to analyst estimates of $5.48 billion. Automatic Data Processing had a net margin of 20.33% and a return on equity of 77.01%. The company’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.49 earnings per share. As a group, equities analysts anticipate that Automatic Data Processing will post 12.38 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have commented on ADP. Guggenheim reaffirmed a “buy” rating and set a $340.00 price objective on shares of Automatic Data Processing in a research note on Thursday, October 29th. UBS Group upped their price target on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Wells Fargo & Company raised their price objective on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Jefferies Financial Group lifted their price objective on shares of Automatic Data Processing from $225.00 to $250.00 and gave the stock an “underperform” rating in a research report on Wednesday, October 28th. Finally, Weiss Ratings upgraded Automatic Data Processing from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, September 22nd. Three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus 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.