ADP increases quarterly dividend by 10% in 51st consecutive annual hike

ROSELAND, N.J. - ADP (NASDAQ:ADP) announced Wednesday a 10% increase in its quarterly cash dividend to $1.70 per share, raising the annual dividend rate to $6.80 per share. The stock, currently trading at $255.20, offers investors a 2.41% dividend yield according to InvestingPro data.

The human capital management technology company’s board approved the $0.16 per share quarterly increase, marking the 51st consecutive year that ADP has raised its dividend, according to a press release statement. InvestingPro data confirms ADP has maintained dividend payments for 52 consecutive years, with a 10% dividend growth over the last twelve months.

"Our dividend is a cornerstone of our long-standing commitment to our shareholders and this 10% increase signifies the Board’s confidence in the financial strength of ADP," said Maria Black, President and CEO of ADP.

The increased dividend will be distributed on January 1, 2026, to shareholders of record on December 12, 2025.

ADP provides HR and payroll solutions to more than 1.1 million clients across over 140 countries. The company has been operating in the human capital management space for more than 75 years, offering services ranging from small business tools to integrated platforms for global enterprises. With a market capitalization of $103.22 billion and impressive gross profit margins of 48.31%, ADP maintains a strong position in the Professional Services industry.

The dividend increase comes as the company continues its focus on delivering technology solutions for workforce management including HR, talent, time management, benefits, compliance, and payroll services. The stock is currently trading near its 52-week low, with InvestingPro offering 12 additional insights and a comprehensive Pro Research Report that provides deeper analysis of ADP’s financial health and growth prospects.

In other recent news, Automatic Data Processing Inc. (ADP) reported its first-quarter fiscal 2026 earnings, surpassing analyst expectations with an earnings per share of $2.49, compared to the forecasted $2.44. The company also exceeded revenue projections, posting $5.2 billion against a forecast of $5.14 billion. Despite these positive earnings results, several analyst firms have adjusted their price targets for ADP. TD Cowen lowered its price target to $263 from $294, maintaining a Hold rating, citing a mixed outlook. Similarly, Jefferies reduced its price target to $245 from $315, also maintaining a Hold rating, following ADP’s revenue growth of 7.1% and earnings per share growth of 6.7%, both of which surpassed expectations. Stifel, while acknowledging ADP’s first-quarter fiscal 2025 results that beat expectations, lowered its price target to $290 from $318, maintaining a Hold rating due to a flat employment outlook. These developments highlight the cautious stance analysts are taking despite ADP’s strong financial performance.

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