ROSELAND, N.J., Nov. 10, 2015 (GLOBE NEWSWIRE) -- The board of directors of Automatic Data Processing, Inc. (Nasdaq:ADP), approved a $0.04 increase in the quarterly cash dividend to an annual rate of $2.12 per share, Carlos Rodriguez, president and chief executive officer, announced today. The increased cash dividend marks the 41st consecutive year in which ADP, a leading global provider of Human Capital Management (HCM) solutions, has raised its quarterly dividend.
"Along with ADP's commitment to our clients and our associates, we remain committed to our shareholder friendly actions. Our 41-year track record of increasing dividends is evidence of this commitment," said Carlos Rodriguez.
With the announcement of the spin-off of CDK Global in 2014, 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 $0.04 increase in 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 subsequent years.
The new quarterly dividend rate of $0.53 per share compares with the previous quarterly dividend rate of $0.49 per share. This increased quarterly dividend will be distributed on January 1, 2016 to shareholders of record at December 11, 2015.
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Source: Automatic Data Processing, Inc.