In This Article:
Analysing ADP's Dividend Yield, Growth, and Sustainability
Automatic Data Processing Inc(NASDAQ:ADP) recently announced a dividend of $1.25 per share, payable on 2023-10-01, with the ex-dividend date set for 2023-09-07. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Automatic Data Processing Inc's dividend performance and assess its sustainability.
What Does Automatic Data Processing Inc Do?
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Warning! GuruFocus has detected 6 Warning Sign with ADP. Click here to check it out.
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ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
A Glimpse at Automatic Data Processing Inc's Dividend History
Automatic Data Processing Inc has maintained a consistent dividend payment record since 1975. Dividends are currently distributed on a quarterly basis. Automatic Data Processing Inc has increased its dividend each year since 1975. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 48 years.
Breaking Down Automatic Data Processing Inc's Dividend Yield and Growth
As of today, Automatic Data Processing Inc currently has a 12-month trailing dividend yield of 1.88% and a 12-month forward dividend yield of 1.97%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Automatic Data Processing Inc's annual dividend growth rate was 10.80%. Extended to a five-year horizon, this rate increased to 12.40% per year. And over the past decade, Automatic Data Processing Inc's annual dividends per share growth rate stands at an impressive 11.10%.
Based on Automatic Data Processing Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Automatic Data Processing Inc stock as of today is approximately 3.37%.