Automatic Data Processing Keeps a Dividend Increase Streak Alive

Automatic Data Processing (ADP), the payroll processing and human resources services company, boosted its quarterly dividend by a penny to 34 cents a share. A dividend increase is usually a good sign, but consider ADP's line of business and the dour employment picture and this increase is somewhat surprising.

Then again, maybe it's not all that surprising. After all, this increase marks the 35th consecutive year ADP has boosted its payout and that's why we always it pays to study a company's dividend history. The new dividend is payable January 1 to shareholders of record on December 11.

Comments

[YoYoMama:]

Yield? Other info besides dividend increase?

Nov 13 09:18 AM

[David Van K...:]

ADP's yield is about 3.1%. As to the increase, it's not surprising either that it happened nor in its magnitude. It's a small increase--a penny per share, or 3%. But this is what a company committed to dividends and a long streak of increases does when times are slow. It raises the dividend a token amount, keeps the streak going, and thereby sends a message that it remains committed to raising the dividend whenever it can. It's a good signal.

Nov 13 02:29 PM