Automatic Data Processing, Inc.
ADP42 yrs growthTechnology · Stock · quarterly payer
Forward Yield
2.54%
Annual Dividend
$6.80
Payout Ratio
61%
5-Yr Growth
11.5%
Ex-Date
Sep 11, 2026
Frequency
Quarterly
Summary
As of September 2026, Automatic Data Processing, Inc. (ADP) yields 2.54% ($6.80 per share annually), with a blended fair-value estimate of $248.70 — -10% downside, so it screens as fairly valued. Dividend safety grade: A (93/100). 42 years of dividend growth.
Is ADP a good dividend stock?
YesAutomatic Data Processing, Inc. (ADP) pays a quarterly dividend yielding 2.54% ($6.80/yr), with 42 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- Dividend Aristocrat — 42 consecutive years of growth
- Never cut its dividend on record
- Strong 11.5% 5-yr dividend growth
- Top-tier dividend safety score
Risks
- Single-stock concentration risk — diversify
Key Data
- Dividend Yield
- 2.54%
- Payout Ratio
- 61%
- Annual Dividend
- $6.80
- 5-Yr Avg Growth
- 11.5%
- Ex-Dividend Date
- Sep 11, 2026
- Years of Growth
- 42
- Frequency
- quarterly
- Beta
- 0.83
- Market Cap
- $106.6B
- P/E Ratio
- 24.5
- 5-Yr Total Return
- 34%
- 52-Week Range
- $188.16 – $296.86
- Dividend Safety
- A · 93/100
- Ever Cut?
- No
Frequently Asked Questions
ADP Price — Last 12 Months
Daily close
Price Return
1 Year
-9%
3 Years
+12%
5 Years
+34%
52-Week Range
$188.16 – $296.86
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is ADP worth?
Fairly valuedhigh confidenceOur blended fair-value estimate for Automatic Data Processing, Inc. is $248.70 per share, versus a market price of $277.62. That implies the stock is roughly fairly priced.
Fair Value
$248.70
Current Price
$277.62
Gap
-10%
Margin of Safety
-12%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 10.9% annual free-cash-flow growth. We model 10.7% — so the price already assumes faster growth than we think is likely.
Assumptions: 8.4% discount rate (CAPM), 10.7% stage-1 growth, 2.5% terminal growth, $10.94 EPS, $6.80 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
ADP Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 11, 2026 | — | $1.7000 | regular |
| Jun 12, 2026 | — | $1.7000 | regular |
| Mar 13, 2026 | — | $1.7000 | regular |
| Dec 12, 2025 | — | $1.7000 | regular |
| Sep 12, 2025 | — | $1.5400 | regular |
| Jun 13, 2025 | — | $1.5400 | regular |
| Mar 14, 2025 | — | $1.5400 | regular |
| Dec 13, 2024 | — | $1.5400 | regular |
| Sep 13, 2024 | — | $1.4000 | regular |
| Jun 14, 2024 | — | $1.4000 | regular |
| Mar 7, 2024 | — | $1.4000 | regular |
| Dec 7, 2023 | — | $1.4000 | regular |
| Sep 7, 2023 | — | $1.2500 | regular |
| Jun 8, 2023 | — | $1.2500 | regular |
Income Calculator
At $6.80 / yr per share
