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

Automatic Data Processing has raised its dividend payment by an average of 19.0% annually over the last three years and has increased its dividend every year for the last 44 years. Automatic Data Processing has a payout ratio of 66.8% indicating that its dividend is sufficiently covered by earnings. Equities 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%.

Shares of NASDAQ ADP traded up $1.58 during trading hours on Wednesday, reaching $172.81. 2,096,212 shares of the stock traded hands, compared to its average volume of 1,304,867. The company has a market capitalization of $74.03 billion, a P/E ratio of 31.71, a price-to-earnings-growth ratio of 2.14 and a beta of 0.86. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.19. Automatic Data Processing has a 52-week low of $130.95 and a 52-week high of $174.50. The company’s 50-day simple moving average is $169.85 and its two-hundred day simple moving average is $166.00.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, October 30th. The business services provider reported $1.34 EPS for the quarter, topping the Zacks’ consensus estimate of $1.33 by $0.01. The business had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. Automatic Data Processing had a return on equity of 46.94% and a net margin of 16.52%. The business’s quarterly revenue was up 5.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.20 EPS. As a group, sell-side analysts forecast that Automatic Data Processing will post 6.16 earnings per share for the current fiscal year.

In related news, VP Donald Weinstein sold 2,000 shares of Automatic Data Processing 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 sale, the vice president now directly owns 25,710 shares in the company, valued at $4,372,756.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Carlos A. Rodriguez sold 48,571 shares of Automatic Data Processing 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 owns 144,899 shares in the company, valued at $24,416,930.49. The disclosure for this sale can be found here. 0.31% of the stock is currently owned by company insiders.

A number of brokerages have commented on ADP. Citigroup lifted their price target on Automatic Data Processing from $170.00 to $185.00 and gave the stock a “neutral” rating in a research note on Tuesday. Moffett Nathanson cut Automatic Data Processing from a “buy” rating to a “neutral” rating in a research note on Tuesday, January 7th. ValuEngine raised Automatic Data Processing from a “sell” rating to a “hold” rating in a research note on Tuesday, December 3rd. Credit Suisse Group reaffirmed a “buy” rating and issued a $185.00 price target on shares of Automatic Data Processing in a research note on Monday, November 4th. Finally, BidaskClub lowered Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Thursday, December 5th. Eleven equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $182.11.

Automatic Data Processing declared that its Board of Directors has approved a share buyback program on Tuesday, November 12th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes 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 of directors believes its shares are undervalued.

About Automatic Data Processing

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.

Featured Story: Pattern Day Trader

Dividend History for Automatic Data Processing (NASDAQ:ADP)

Receive News & Ratings for Automatic Data Processing Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Automatic Data Processing and related companies with MarketBeat.com's FREE daily email newsletter.