Dividend Aristocrat ADP raises dividend 2.2% in 2020
The new quarterly dividend rate of $0.93 per share will be distributed on January 1, 2021 to shareholders of record on December 11, 2020.
The increased cash dividend marks the 46th consecutive year in which ADP, a leading global technology company providing human capital management (HCM) solutions, has raised its quarterly dividend.
"This increase in our quarterly dividend represents a strong signal of the board's confidence in ADP's future and our ability to navigate the present economic uncertainty. Our dividend is a cornerstone to our long-standing commitment to shareholder-friendly actions, and we are pleased to increase it for a 46th consecutive year," said Carlos Rodriguez in the company's press release.
The new annual dividend rate of $3.64 per share yields 2.2 percent at at stock price of $168. This is the smallest dividend hike announced by ADP since 2014, when the quarterly payment was raised by 2.1 percent.
Last year ADP announced a 15 percent dividend increase, marking 45 consecutive years of dividend increases.
Automatic Data Processing, Inc. (ADP) is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. ADP also provides business process outsourcing solutions. Its segments include Employer Services and Professional Employer Organization (PEO) Services. The Employer Services segment offers a range of human resources (HR) business process outsourcing and technology-enabled HCM solutions. These offerings include payroll services, benefits administration, talent management, HR management, time and attendance management, insurance services, retirement services, and tax and compliance services. The company has paid a dividend every year since at least 1974 and is a Dividend Aristocrat.