ROSELAND, N.J. - ADP (NASDAQ:ADP), a global leader in human capital management solutions, has increased its quarterly cash dividend by $0.14, reaching an annual rate of $6.16 per share, the company's President and CEO Maria Black announced today. This increment highlights ADP's 50th consecutive year of dividend growth, a milestone that places the company among the prestigious 'Dividend Kings', a select group of companies with a history of increasing dividends for at least five decades.
The new dividend rate of $1.54 per share, representing a 10% rise from the previous dividend, is set to be paid out on January 1, 2025, to shareholders who are on record as of December 13, 2024. This move underscores the board's confidence in ADP's financial strength and commitment to delivering shareholder value.
Maria Black expressed enthusiasm for the company's consistent performance and its role in driving workforce innovation over its 75-year history. She emphasized the significance of the dividend as a key aspect of ADP's dedication to its shareholders.
ADP's announcement comes as the company continues to innovate in the field of human resources, talent, time management, benefits, and payroll services. With a focus on data-driven and people-oriented solutions, ADP aims to empower individuals and organizations to achieve their full potential.
The information for this article is based on a press release statement.
In other recent news, Automatic Data Processing (NASDAQ:ADP) reported a strong first quarter performance, with a 7% increase in revenue and a 12% rise in earnings per share (EPS), surpassing market expectations. Analysts from TD Cowen, Stifel, and RBC Capital have maintained their Hold and Sector Perform ratings on ADP shares, while raising their price targets to $285, $305, and $315 respectively. These adjustments reflect ADP's consistent performance and robust bookings, largely due to steady Human Capital Management (HCM) demand, and the positive influence of WorkForce Software (ETR:SOWGn) acquisition on the company's outlook.
ADP has updated its revenue growth projection for fiscal year 2025 to 6-7%, an increase of approximately $200 million, attributed to the WorkForce Software acquisition and strong first-quarter results. However, the expected improvement in EBIT margin has been revised downward from an increase of 60-80 basis points year-over-year to 30-50 basis points, accounting for around $50 million in acquisition-related headwinds. EPS growth estimates for fiscal year 2025 have been lowered by 100 basis points to 7-9%, reflecting these factors and a slight reduction in client funds interest.
In addition to these financial updates, ADP has announced its acquisition of WorkForce Software, aiming to bolster its workforce management solutions for large enterprises, and introduced ADP Lyric, a new global HCM platform. These are the recent developments shaping ADP's business operations and future trajectory.
InvestingPro Insights
ADP's recent dividend increase aligns with its strong financial position and commitment to shareholder returns. According to InvestingPro data, ADP boasts a market capitalization of $118.64 billion, reflecting its significant presence in the Professional Services industry. The company's revenue for the last twelve months stood at $19.52 billion, with a healthy revenue growth of 6.63%.
An InvestingPro Tip highlights that ADP has maintained dividend payments for 51 consecutive years, underscoring the company's long-term financial stability and shareholder-friendly policies. This consistency in dividend payments is particularly relevant given the recent announcement of the 50th consecutive year of dividend growth.
Another InvestingPro Tip notes that ADP operates with a moderate level of debt, which supports its ability to sustain and increase dividend payments. This financial prudence is crucial for maintaining the company's status as a Dividend King.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips that could provide valuable context for ADP's financial health and market position. These tips, along with real-time metrics, can help investors make more informed decisions about ADP's stock.
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