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

Automatic Data Processing, Inc. (NASDAQ:ADP) declared a quarterly dividend on Wednesday, August 5th. Shareholders of record on Friday, September 11th will be given a dividend of 1.70 per share by the business services provider on Thursday, October 1st. This represents a c) annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Friday, September 11th.

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% meaning its dividend is sufficiently covered by earnings. Research analysts expect Automatic Data Processing to earn $13.47 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 50.5%.

Automatic Data Processing Stock Performance

NASDAQ ADP opened at $270.09 on Thursday. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.04. The company has a market cap of $107.96 billion, a P/E ratio of 24.69 and a beta of 0.81. The stock has a 50-day moving average of $238.87 and a two-hundred day moving average of $224.57. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $310.08.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The business had revenue of $5.47 billion for the quarter, compared to analysts’ expectations of $5.44 billion. During the same quarter in the prior year, the company earned $2.26 earnings per share. The business’s quarterly revenue was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, analysts anticipate that Automatic Data Processing will post 12.3 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ADP shares. Guggenheim upped their target price on shares of Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Robert W. Baird dropped their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Argus cut their price objective on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating on the stock in a research report on Tuesday, May 5th. Jefferies Financial Group cut their price objective on Automatic Data Processing from $230.00 to $190.00 in a research report on Thursday, April 30th. Finally, Mizuho reduced their price objective on Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $273.50.

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.