ADP increases dividend for 40th consecutive year

Dividend Aristocrat ADP will raise its dividend by 2,1%.

It's the 40th consecutive year of dividend increases for ADP, that wil raise the quarterly dividend by $0,01 to $0,49 per share.

"ADP remains committed to returning excess cash to its shareholders, and four decades of increased dividends is a gratifying milestone," said Carlos Rodriguez, president and chief executive officer of ADP, a leading global provider of Human Capital Management (HCM) solutions. "Along with providing client-focused, innovative HCM services and a fulfilling workplace for our associates, ADP remains committed to its shareholder friendly actions, and I am pleased that we have continued our history of dividend increases despite the recent spin-off of CDK Global."

With the announcement of the spin-off of CDK Global earlier this year, ADP stated its intention to continue its track record of annual dividend increases, subject to board approval, while returning to its pre-separation target dividend payout ratio of 55% to 60%. This $0,01 increase to the quarterly cash dividend results in a dividend payout ratio above this target. ADP intends to grow the cash dividend at a slower rate than earnings growth to allow the company to return to this target 55% to 60% dividend payout ratio in about two years.

The new annual dividend of $1,96 per share gives ADP an indicated dividend yield of 2,3% at the current stock price of $85.

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