Automatic Data Processing (ADP) Declares Quarterly Dividend on Solid Q2 Results

Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the top tech stocks with a strong return on equity. On August 6, the company reiterated its commitment to shareholder value by declaring a quarterly dividend of $1.54 a share.

The dividend is payable on October 1, 2025, to shareholders of record as of September 12, 2025. The quarterly dividend, which translates to a dividend yield of 2.01%, follows the company’s delivery of solid fourth-quarter fiscal 2025 results, with earnings and revenues exceeding expectations.

Revenue in the quarter was up 7.5% year-over-year to $5.13 billion, higher than $5.09 billion expected. Earnings per share came in at $2.26, higher than the expected $2.25. Record-high client satisfaction levels across the company bolstered the better-than-expected results. For fiscal 2026, ADP is projecting revenue growth of between 5% and 6% with diluted earnings per share growth of between 8% and 10%.

Automatic Data Processing, Inc. (NASDAQ:ADP) is a company that provides cloud-based human capital management (HCM) solutions and business process outsourcing (BPO) services. They help businesses manage various HR functions, including payroll, talent manage

While we acknowledge the potential of ADP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Best NYSE Penny Stocks to Invest in Now and 10 Best 52-Week High Stocks to Buy According to Analysts.

Disclosure: None. This article is originally published at Insider Monkey.