Is Automatic Data Processing, Inc. a good dividend stock?

Automatic Data Processing, Inc. (ADP) is a dividend-paying stock with a current dividend yield of 2.95%. Review its dividend history, payout consistency and growth to judge whether it fits your income strategy.

What is ADP's dividend yield?

The dividend yield for ADP stock is currently 2.95%.

How much does ADP pay in dividends per year?

Automatic Data Processing, Inc. pays an annual dividend of $6.6400 per share over the trailing twelve months.

How often does ADP pay dividends?

ADP stock pays dividends quarterly.

Is ADP's dividend growing?

Automatic Data Processing, Inc.'s 3-year dividend CAGR is 12.26%.

ADP Stock Price, Chart, Stats & News

Automatic Data Processing, Inc.

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Overview Dividend safety Dividends Fundamentals

Automatic Data Processing, Inc. (ADP) is a dividend-paying stock with a current dividend yield of 2.95% as of Jun 29, 2026. It pays $6.64 per share over the trailing twelve months and distributes quarterly. Its dividend has grown at a 11.98% 5-year compound annual rate.

89.93B

Market cap

20.95x

Current P/E

17.79x

Forward P/E

2.95%

Dividend yield

$6.64

ADP dividend

Dividend safety

Moderate

Dividend coverage is moderate for ADP — it pays out about 62% of earnings.

See the safety analysis

ADP chart

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Fundamentals

Gross margin	48.36%
Operating margin	18.83%
Pretax margin	25.94%
Net margin	19.96%
Effective tax rate	23.04%
ROA	5.00%
ROE	68.28%
D/E	0.72x
Interest coverage ratio	8.94x

All financials

ADP valuation

P/E	20.95x
P/S	3.84x
P/B	12.71x
P/CF	17.14x
P/FCF	17.71x
P/OCF	17.14x
PEG	7.23x
EV multiple	12.26x

About

Industrials

Sector

Staffing & Employment Services

Industry

Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing.