Automatic Data Processing (NASDAQ:ADP) Declares Quarterly Dividend of $0.91

Automatic Data Processing (NASDAQ:ADP) announced a quarterly dividend on Wednesday, January 15th, RTT News reports. Stockholders of record on Friday, March 13th will be given a dividend of 0.91 per share by the business services provider on Wednesday, April 1st. This represents a $3.64 annualized dividend and a dividend yield of 2.11%.

Automatic Data Processing has increased its dividend by an average of 19.0% per year over the last three years and has increased its dividend annually for the last 44 consecutive years. Automatic Data Processing has a dividend payout ratio of 66.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Automatic Data Processing to earn $6.91 per share next year, which means the company should continue to be able to cover its $3.64 annual dividend with an expected future payout ratio of 52.7%.

NASDAQ:ADP opened at $172.81 on Thursday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.01 and a quick ratio of 1.01. The firm has a 50-day moving average of $169.87 and a 200-day moving average of $166.04. The company has a market cap of $74.09 billion, a PE ratio of 31.71, a PEG ratio of 2.14 and a beta of 0.86. Automatic Data Processing has a one year low of $131.84 and a one year high of $174.50.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 30th. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.33 by $0.01. Automatic Data Processing had a net margin of 16.52% and a return on equity of 46.94%. The business had revenue of $3.50 billion during the quarter, compared to the consensus estimate of $3.52 billion. During the same period in the prior year, the firm posted $1.20 EPS. The firm’s quarterly revenue was up 5.6% compared to the same quarter last year. On average, equities research analysts expect that Automatic Data Processing will post 6.16 earnings per share for the current fiscal year.

Automatic Data Processing announced that its Board of Directors has initiated a share buyback program on Tuesday, November 12th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to purchase up to 6.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its stock is undervalued.

A number of research analysts have weighed in on ADP shares. Credit Suisse Group reiterated a “buy” rating and issued a $185.00 target price on shares of Automatic Data Processing in a research note on Monday, November 4th. Wolfe Research cut shares of Automatic Data Processing from an “outperform” rating to a “market perform” rating in a research note on Thursday, October 31st. Moffett Nathanson cut shares of Automatic Data Processing from a “buy” rating to a “neutral” rating in a research note on Tuesday, January 7th. Citigroup boosted their target price on shares of Automatic Data Processing from $170.00 to $185.00 and gave the company a “neutral” rating in a research note on Tuesday. Finally, BidaskClub cut shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research note on Thursday, December 5th. Eleven analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $182.11.

In other Automatic Data Processing news, CEO Carlos A. Rodriguez sold 48,571 shares of the stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $168.51, for a total value of $8,184,699.21. Following the sale, the chief executive officer now directly owns 144,899 shares in the company, valued at approximately $24,416,930.49. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Donald Weinstein sold 2,000 shares of the stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $170.08, for a total transaction of $340,160.00. Following the completion of the sale, the vice president now owns 25,710 shares in the company, valued at $4,372,756.80. The disclosure for this sale can be found here. 0.31% of the stock is owned by insiders.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides business process outsourcing services worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers various human resources (HR) outsourcing and technology-based human capital management solutions.

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Dividend History for Automatic Data Processing (NASDAQ:ADP)

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