ROSELAND, N.J., Nov. 11, 2014 (GLOBE NEWSWIRE) -- The board of directors of Automatic Data Processing, Inc. (Nasdaq:ADP), approved a $0.01 increase in the quarterly cash dividend to an annual rate of $1.96 per share, Carlos Rodriguez, president and chief executive officer, announced today. The increased cash dividend marks the 40th consecutive year in which ADP, a leading global provider of Human Capital Management (HCM) solutions, has raised its quarterly dividend.
"ADP remains committed to returning excess cash to its shareholders, and four decades of increased dividends is a gratifying milestone," said Carlos Rodriguez. "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 quarterly dividend rate of $0.49 per share compares with the previous quarterly dividend rate of $0.48 per share. This increased quarterly dividend will be distributed on January 1, 2015 to shareholders of record at December 12, 2014.
Employers around the world rely on ADP® (Nasdaq:ADP) for cloud-based solutions and services to help manage their most important asset – their people. From human resources and payroll to talent management and benefits administration, ADP brings unmatched depth and expertise in helping clients build a better workforce. A pioneer in Human Capital Management (HCM) and business process outsourcing, ADP serves more than 610,000 clients in 100 countries. ADP.com
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CONTACT: ADP Investor Relations, 973.974.5858Source:Automatic Data Processing, Inc.