ADP Dividend History & Description — Automatic Data Processing Inc. Automatic Data Processing is a provider of cloud-based human capital management (HCM) solutions to employers, providing solutions to businesses of various sizes. Multiplied by the number of times a year the company pays its dividend. Trading on the New York Stock Exchange, ADP has a market capitalization of $76.24 billion and pays a 2% dividend yield. EBIT margin rose 60bps to 21.3% of revenue. The company recently reported fiscal 2020 first-quarter earnings, which was another terrific quarter. Although ADP is a highly consistent dividend growth stock, its mid-single-digit expected total returns make the stock a hold. Today, the company is one of the top cloud-based human capital management companies with 810,000 customers in 140 countries. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. ADP has created value for shareholders with annual dividend increases for the past 44 years, as well as high returns from share price appreciation. Both segments produced gains as Employer Services saw its top line increase 4% and PEO Services’ revenue rose 8%. S&P500 US Dividend Aristocrats Requirements. Still, the recent rally in the stock has made ADP less attractive from a valuation perspective. Within this list is a subset of companies known as Dividend Kings. We really like their slogan which states, “At ADP, we’re designing a better way to work so you can achieve what you are working for.”. They are: Pillar #1: HCM Solutions provides cloud-based software helping employers of all sizes hire employees. ADP offered up favorable guidance for this year, continuing many years of strong growth. Dividend Aristocrat #7: Federal Realty Investment Trust (FRT) 5-year Expected Annual Returns: 10.4% The S&P 500 Dividend Aristocrats Index, ... the individual stocks in the Aristocrats Index that have outperformed the S&P 500 by wide margins so far in 2018 are ADP and Sysco. Automatic Data has raised its dividend 44 consecutive years, making it a dividend aristocrat and putting it on track to become a dividend king in 2025. Given ADP’s size and scale, we believe it will perform well during the next recession, which increases the attractiveness of the stock. ADP has been paying dividends since 1974, and has been increasing them annually since 1975. ADP has an above-average dividend yield and the company raises its dividend at a high rate. Dividend Aristocrat in Focus: Automatic Data Processing (ADP) The Dividend Aristocrats are a select group of currently 57 S&P 500 stocks with 25+ years of consecutive dividend increases. The number of employees on ADP clients’ payrolls continues to grow, and we believe this will continue for the foreseeable future. ADP has raised its dividend each year for 45 years in a row. The annual forward dividend is the most recent quarterly dividend approved by ADP’s board of directors. Free Cash Flow = Cash from Operations – Capital Expenditures, Dividend Payout Ratio = Total Dividends Paid / Free Cash Flow. Automatic Data Processing (ADP) belongs in the S&P 500 Dividend Aristocrats group. This article will review ADP’s fundamentals and discuss whether the stock is trading at an attractive enough valuation to buy now. As a result, investors cannot rely on an expanding price-to-earnings ratio to fuel shareholder returns. ADP has grown its dividend each year since 1976 and became a Dividend Aristocrat in 2000. Then for the first time increased the dividend in 1975. ADP's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! In the last decade, ADP has out performed S&P 500 by 79%. There are 60 symbols in this channel. Automatic Data Processing (ADP) is a dividend aristocrat that has increased its dividend for 41 straight years. The strongest gains continue to accrue from the PEO Services segment, and we believe ADP will produce 8% earnings-per-share growth annually in the coming years. It has approximately 800,000 clients, in more than 140 countries worldwide. Net income grew 15% coming in at $582 million implying a net profit margin of 16.6%. To be included in the Dividend Achievers Index, a stock must be a member of the S&P 500 and meet certain size and liquidity requirements. Likewise, similar pattern emerged during the commodity price crash of 2016. For 2020, we had seven additions and no deletions. If a recession occurs, ADP should continue to increase its dividend, as customers will still need its services. ADP Stock is in red line versus the S&P 500 which is in blue. In its Investor Presentation, the company gives a top line overview of its operations. The good news is that the company is growing at a high enough rate that it could help justify something close its current valuation. Dividend Aristocrat Automatic Data Processing (ADP) will increase its quarterly payment by by 2.2 percent to $0.93 per share in 2020.This marks the 46th consecutive year of annual dividend increases. Two key growth catalysts for ADP are continued increases in payrolls, and regulation. ADP Is A Dividend Aristocrat. To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria: Its most recent increase was on November 8 th, 2016, when the company announced a solid 7.5% raise.. ADP is a member of the Dividend Aristocrats, a group of 51 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. ADP maintains a target payout ratio of 55%-60% of annual earnings, so the payout is very safe with room to grow. ADP is a member of the S&P 500 Dividend Aristocrats index since it has raised its dividends for 45 years in a row, without missing a single year. Consistent dividend growth for 45 years, making this a Dividend Aristocrat. In fact, ADP is the only Dividend Aristocrat in the information technology sector. Management has provided outlook for 2020 fiscal year where revenues are expected to grow between 6% to 7% led by PEO Services which is expected to grow 9% to 11%. This article is broken down in to sections, feel free to jump to the area that interests you. Total revenue gained 6% to $3.5 billion while adjusted earnings before interest and taxes, or EBIT, increased 8% to $745 million. Industrials. Its most recent increase came in November 2019, when the company implemented another very strong 15% raise. Attached chart shows ADP’s dividend growth history showing a nice steep uptrend and the power of compounding in play. We expect ADP to grow earnings-per-share by 8% annually over the next five years. Charts; Tables; NAME SYMBOL PRICE PRICE % MARKET CAP . Dividend.com: The #1 Source For Dividend Investing. This represents a compounded annual growth rate (CAGR) of 13.2% which is truly stunning. This indicates the stock looks reasonably valued today. Instead, future returns will be generated from earnings growth and dividends. Employing 58,000 people, ADP’s business strategy is based on 3 key pillars. ADP enjoys tremendous scale that its competitors cannot match. Dividend Aristocrats (Sorted by Dividend Yield) Here are the 65 S&P 500 Dividend Aristocrats sorted by dividend yield from highest to lowest. Dividend.com: The #1 Source For Dividend Investing. ADP has built its success on attracting small and large businesses alike, and we see its years-long transformation to this portfolio as a competitive advantage. Dividend payout ratio of 69% which leaves room for future dividend growth, smart acquisitions and share repurchases. ADP will almost certainly continue to increase its dividend for many years to come given that its fundamentals are so strong. The S&P Dividend Aristocrats Stocks List is a group of companies that have paid and increased dividends for 25 years or more. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. In fact, ADP is the only Dividend Aristocrat in the information technology sector. ADP is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. We forecast adjusted earnings-per-share of approximately $6.16 for fiscal 2020. Stay on top of your next investment decision with the Dividend Snapshot US Aristocrats List. Companies in XLK usually command a higher valuation than the broader market and this is also true for ADP. The following section ranks our top 7 Dividend Aristocrats to buy today, based on expected annual returns through 2025. Dividend articles featuring Adp (ADP): 2020-06-06 Dividend Champion And Contender Highlights: Week Of June 7 2020-06-06 5 Safe And Cheap Dividend Stocks To Invest In (June 2020) 2020-06-01 3 Best Dividend Aristocrats And Kings, And 3 To Avoid 2020-05-29 10 Dividend Growth Stocks For May 2020 2020-04-16 The 13 Best Dividend Aristocrats To Buy In This Uncertain Economy Automatic Data Processing A Dividend Aristocrat is a stock with 25 years or more of consecutive dividend increases and is part of the S&P 500. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. ADP provides services including payroll, benefits administration, and human resources management, to companies of all sizes. Which Companies are Aristocrats? ADP Stock has grown from $5 in January 1990 to $178 as of January 2020. The Dividend Aristocrats List and Index (2015) Now, you may be wondering which these companies actually are? The payout for fiscal 2019 is $3.64 per share after the November 2019 increase. Trades at 29 times forward earnings while the S&P 500 trades at 18.5 times. Click here to download your Dividend Aristocrats Excel Spreadsheet List now. The Dividend Aristocrats is S&P500 list of stocks that have increased their dividend payouts for at least 25 consecutive years. ADP Stock has consistently grown its dividend for 45 years in a row, which is nothing short of spectacular. Based on the current share price, the stock has a price-to-earnings ratio of 27.7. But ADP stock would be an attractive buy on any meaningful pullback in the share price, which would result in a lower valuation and higher dividend yield. This number of annual dividend increases makes ADP a Dividend Aristocrat. These ... McDonald’s Stock is a member of the elite S&P 500 Dividend Aristocrats index. ADP pays an annual forward dividend of $3.72 per share. In 2014, ADP spun off its human capital management business, which now trades as CDK Global (CDK). ADP has raised its dividend each year for 45 years in a row. And, as the economy expands, companies are adding employees and increasingly use ADP’s services. Wal-Mart Stores WMT 145.92 0.49 (0.3%) Market Cap: 412.1 Billion. Earnings-per-share came in at $1.34 on an adjuste… Automatic Data Processing has a long history of paying and raising its dividend. To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria: Find the latest dividend history for Automatic Data Processing, Inc. Common Stock (ADP) at Nasdaq.com. ADP has increased its dividend payments for 41 consecutive years, making the company a Dividend Aristocrat.The image below shows the company’s quarterly dividend history since 1983. Source: Investor Day Presentation, page 3. PEO is the fastest growing segment growing revenues at a compounded annual growth rate (CAGR) of 14% while ES is at 5%. That means ADP stock is an S&P 500 Dividend Aristocrat, which is an elite title reserved for S&P 500 companies with at least 25 consecutive years of annual dividend increases. However, a general market correction of 10% would present significant buying opportunities for long term investors. Emerson Stock is a member of the prestigious S&P 500 Dividend Aristocrats. The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years in a row. I'm an administrator that manages payroll, benefits or HR Online access, questions, about paystubs, W2, … We think the stock is too expensive given this valuation and investors should not chase it up here. Both segments produced gains as Employer Services saw its top line increase 4% and PEO Services’ revenue rose 8%. ADP stock is overqualified for that title. With more than four consecutive decades of dividend increases, Automatic Data Processing (ADP) is one of my favorite dividend aristocrats. Rock-solid dividend aristocrats you can bank on. ADP has one of the longest streaks of dividend increases in the stock market. In addition, the stock has a current dividend yield of 2.1%. Rarely do investors find a combination of strong growth prospects and recession resilience, along with a world-class dividend increase streak. ADP's fundamentals are reasonably priced at a 23 forward P/E, a 1.89 PEG, a very low debt-to-equity ratio of 0.37 and a highly sustainable payout ratio of 58% to accompany its 1.93% dividend yield. Revenue should be up 6% to 7%, while EBIT margin should rise 100bps to 125bps, and adjusted earnings-per-share should rise 12% to 14%. Total revenue gained 6% to $3.5 billion while adjusted earnings before interest and taxes, or EBIT, increased 8% to $745 million. ADP Stock last raised its annual dividend by 15% on November 12th, 2019 to $3.64 per share. ADP has raised its dividend each year for 45 years in a row. The company’s excellent dividend growth track record is the result of its reliable business model. The reason for ADP’s continued growth during the Great Recession is that businesses still need payroll and human resource services, even in an economic downturn. The company maintains a large list of customers, and holds a top position in the industry. Dividend Aristocrats. 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