Automatic Data Processing (NASDAQ: ADP) raised its quarterly dividend by 12 percent on Wednesday, lifting the payout to $1.90 per share and extending one of the longest raise streaks in the S&P 500.
The increase is the 52nd consecutive annual boost for the Roseland, New Jersey payroll processor. ADP now belongs to a small group of companies that have lifted their dividends every year for at least half a century.
The setup
ADP’s board approved the higher payout on November 11, 2026. The new quarterly rate works out to $7.60 per share annually, up from $6.80. Shareholders of record on December 11, 2026 receive the dividend on January 1, 2027.
The raise lands as income investors weigh dividend stocks against bond yields. ADP’s core business, processing paychecks for employers, produces recurring revenue that tends to hold steady across economic cycles.
Key numbers
The table below shows how the new rate changes the income math at Tuesday’s closing price of $305.44.
| Metric | Old rate | New rate | Change |
|---|---|---|---|
| Quarterly dividend | $1.70 | $1.90 | +11.8% |
| Annualized dividend | $6.80 | $7.60 | +11.8% |
| Indicated yield | 2.23% | 2.49% | +0.26 points |
| Income per $100,000 invested | $2,230 | $2,490 | +$260 |
Every $100,000 invested at Tuesday’s close now generates roughly $2,490 in yearly dividend income. The old rate paid about $2,230 on the same dollars.
Key dates for the new payout
| Event | Date |
|---|---|
| Announcement | November 11, 2026 |
| Record date | December 11, 2026 |
| Payment date | January 1, 2027 |
Because stock settlement takes one business day, the ex-dividend date typically matches the record date. Investors need to own shares before the ex-dividend date to collect the January payment.
Why the streak matters
ADP holds a seat in the S&P 500 Dividend Aristocrats index, whose 69 members have paid a higher dividend for at least 25 straight years. The company also sits on the smaller list of 60 dividend kings, firms with 50 or more consecutive annual increases, according to Morningstar.
Few businesses sustain that record. It requires durable cash flow, disciplined management, and a business model that survives recessions without cutting the payout.
Payroll processing fits that profile better than most industries. Employers must run payroll every pay period, in good times and bad, which keeps revenue flowing to ADP regardless of the broader economy.
What income investors should watch
- A 2.49 percent yield sits below many Treasury and corporate bond yields, so the case for ADP rests on dividend growth rather than current income.
- Valuation matters. Paying a premium price can drag total returns even while the payout compounds.
- Watch employment trends. ADP’s monthly employment reports offer a running read on the health of its core market.
- Dividend growth has outpaced inflation over long stretches, but single-year raises can fall short when prices spike.
Bottom line
ADP’s 52nd straight increase reinforces its standing as one of the market’s most dependable dividend payers. Investors who prioritize consistency over headline yield have another data point in their favor.
Those seeking higher current income may still need to pair the stock with higher-yielding holdings to reach their annual income targets.
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