It has been about a month since the last earnings report for Automatic Data Processing (ADP) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is ADP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. ADP's Q1 Earnings Beat EstimatesAutomati ...

Experts share insights and resources to help employers navigate HR trends and priorities in the year aheadROSELAND, N.J., Nov. 18, 2024 /PRNewswire/ -- From developments in generative artificial intelligence (AI), skill-building and employee well-being to laws and regulations surrounding AI and pay transparency, the global world of work will continue to transform in 2025. To help employers navigate shifting priorities, ADP today unveiled the key HR trends employers should have on their radar and the resourc ...

Joseph Jones, professor at The University of Southern Mississippi, has over fifteen years of experience studying the market. He focuses on portfolio construction from a dividend growth investor's perspective. The insights expressed in his research are solely his own; they do not represent the views or financial interests of his employer.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the nex ...

As is the case with life, there are no guarantees in dividend investing. The dividend payer of today could cut or suspend its dividend tomorrow - or even go bankrupt. For my money, owning a well-diversified portfolio of provenHi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to TipRanks, Sure Dividend, and The Dividend Kings and iREIT+Hoya Capital. I have been investing since September 2017 and interested in dividend investing since about 2009.Since July 2018 ...

These companies have delivered 50 or more years of dividend increases. Many companies have either had to stop increasing their dividends or, worse yet, cut or suspend their payouts because of financial troubles over the years. That makes those with unbroken streaks of growing their payouts all the more impressive. A tiny percentage of public companies have multidecade streaks of increasing their dividends. A little more than 50 companies have delivered 50 or more years of dividend growth. Dubbed Dividend Ki ...

A study by Harford Funds shows that companies that raise their dividends outperform those that don't, with significantly less volatility.The stock market is a great way to build long-term wealth. With countless approaches available, navigating the world of investing can feel overwhelming.But one method that stands out is buying shares of dividend-paying companies, which -- over lengthy periods -- have consistently outperformed peers that don't pay dividends.A study by Hartford Funds showed that, over a 50-y ...

Revenue and Earnings Growth - Revenue growth of 7% to $4,832.7 million for the three months ended September 30, 2024, with 7% organic constant currency growth[95] - Earnings before income taxes margin expanded by 140 bps, and adjusted EBIT margin expanded by 130 bps[95] - Diluted and adjusted diluted earnings per share ("EPS") growth of 13% to $2.34 and 12% to $2.33, respectively[95] - Net earnings increased by 11% to $956.3 million for the three months ended September 30, 2024, compared to $859.4 million in the same period last year[125] - Adjusted EBIT increased by 13% to $1,232.5 million for the three months ended September 30, 2024, with an adjusted EBIT margin of 25.5%[125] Cash Flow and Liquidity - Cash returned via shareholder-friendly actions of $940M, including $570M of dividends and $370M of share repurchases[95] - Cash and cash equivalents stood at $2.1 billion as of September 30, 2024, primarily invested in time deposits and money market funds[129] - The company has $10.3 billion of committed credit facilities and expects sufficient liquidity to meet operating, investing, and financing activities for the foreseeable future[130] - Operating cash flow increased to $824.4 million in September 2024, up from $326.5 million in September 2023, driven by favorable working capital changes and business growth[133] - Net cash flows provided by operating activities increased to $824.4 million in 2024, up from $326.5 million in 2023, driven by favorable changes in working capital and business growth[133] - Net cash flows used in investing activities changed significantly to $(1,644.4) million in 2024, primarily due to timing of purchases and proceeds of corporate and client funds marketable securities of $1,426.7 million[134] - Net cash flows used in financing activities increased to $(6,491.5) million in 2024, largely due to a net decrease in cash flow from client funds obligations of $9,495.6 million[135] - The company repurchased 1.4 million shares at an average price of $259.47 per share in September 2024, compared to 1.0 million shares at $242.26 per share in September 2023[136] - The company repurchased 1.4 million shares of common stock at an average price of $259.47 per share in Q3 2024, compared to 1.0 million shares at $242.26 per share in Q3 2023[136] - The company maintains $10.3 billion in committed credit facilities, with no borrowings through September 30, 2024[140] Employer Services Performance - Employer Services revenue increased by 7% to $3,261.0 million for the three months ended September 30, 2024, driven by new business bookings, strong client retention, and a 2% increase in pays per control[113][115] - Employer Services' earnings before income taxes increased by 15% to $1,164.3 million for the three months ended September 30, 2024, driven by client funds interest revenues and operating efficiencies[114][116] - Employer Services' margin increased by 260 basis points to 35.7% for the three months ended September 30, 2024, due to client funds interest revenues and reduced research and development costs[115][116] PEO Services Performance - PEO Services revenue increased by 7% to $1,574.5 million for the three months ended September 30, 2024, due to a 3% increase in average worksite employees and higher zero-margin benefits pass-throughs[117] - PEO Services' earnings before income taxes increased by 1% to $225.6 million for the three months ended September 30, 2024, partially offset by higher selling expenses and zero-margin benefits pass-through costs[114][118] - PEO Services' margin decreased by 80 basis points to 14.3% for the three months ended September 30, 2024, due to higher zero-margin benefits pass-through costs and workers' compensation expenses[115][119] Interest and Investment Performance - Interest on funds held for clients increased to $253.3 million, up from $201.7 million in the same period last year, driven by a higher average interest rate of 3.1% and a 5.3% increase in average client funds balances to $32.8 billion[99] - Interest expense increased by 50% to $137.8 million due to higher average commercial paper borrowings of $4.8 billion and reverse repurchase borrowings of $3.8 billion[104] - Average daily commercial paper borrowings were $4.8 billion in September 2024, with a weighted average interest rate of 5.3%[139] - The company has $7.3 billion available under U.S. reverse repurchase agreements, with $679.1 million outstanding as of September 2024[139] - Total average investment balances increased to $43,456.8 million in September 2024, up from $38,258.4 million in September 2023[150] - The annualized interest rate earned on the investment portfolio increased to 3.2% in September 2024, up from 2.6% in September 2023[150] - A 25 basis point change in short-term interest rates could impact earnings before taxes by approximately $7 million over the next 12 months[150] - Corporate investments increased to $10,669.8 million in September 2024 from $7,129.0 million in September 2023, a 49.6% increase[150] - Funds held for clients grew to $32,787.0 million in September 2024 from $31,129.4 million in September 2023, a 5.3% increase[150] - Total average investment balances rose to $43,456.8 million in September 2024 from $38,258.4 million in September 2023, a 13.6% increase[150] - Average interest rates earned on corporate investments increased to 3.4% in September 2024 from 2.6% in September 2023[150] - Average interest rates earned on funds held for clients increased to 3.1% in September 2024 from 2.6% in September 2023[150] - Total average interest rates earned increased to 3.2% in September 2024 from 2.6% in September 2023[150] - Net unrealized pre-tax losses on available-for-sale securities decreased to $651.2 million in September 2024 from $1,515.8 million in June 2024[150] - Total available-for-sale securities at fair value increased to $33,673.1 million in September 2024 from $31,207.5 million in June 2024[150] - A hypothetical 25 basis points change in short-term and intermediate-term interest rates could result in a $15 million impact to earnings before income taxes over the next twelve months[150] - The company limits credit risk by investing primarily in AAA-rated and AA-rated securities[151] Capital Expenditures and Share Repurchases - Capital expenditures for September 2024 were $55.6 million, with fiscal 2025 expectations between $200 million and $225 million[142] - Capital expenditures for Q3 2024 were $55.6 million, with fiscal 2025 expectations between $200 million and $225 million[142] Debt and Borrowings - The company has $4.0 billion of senior unsecured notes with maturity dates in 2025, 2028, 2030, and 2034[137] - The company's U.S. commercial paper program allows for issuance of up to $10.3 billion, with $4.4 billion outstanding as of September 30, 2024[138] - Average daily borrowings under the commercial paper program were $4.8 billion in Q3 2024, with a weighted average interest rate of 5.3%[139] - The company has $7.3 billion available on a committed basis under U.S. reverse repurchase agreements, with $679.1 million outstanding as of September 30, 2024[139] Acquisitions and Investments - Acquired WorkForce Software for approximately $1.2 billion in cash[95] - Research and development expenses decreased by 2% to $232.6 million due to workforce optimization and increased capitalizable spend related to GenAI integration[101]

Winners to be revealed during 40th Annual ADP® Meeting of the Minds Conference in March ROSELAND, N.J., Oct. 31, 2024 /PRNewswire/ -- ADP, a leading global technology company providing human capital management (HCM) solutions, today announced the finalists for the 2025 HCM Distinction Awards. Celebrating the transformation of work, the awards program recognizes a select group of large employers that demonstrate excellence in HCM and lead the way in workplace innovation.This year's prestigious HCM Distinctio ...

These dividend stocks can be excellent options for buy-and-hold investors.A dividend growth stock can be an extremely valuable investment to hold in your portfolio as it can be a source of recurring income. As the company raises its dividend, that increase can more than offset the effects of inflation, resulting in even more income down the road. This gives you an incentive to buy and hold for a good long while.Three stocks that routinely raise their dividend payments and could be due for another round of i ...

Automatic Data Processing, Inc. (ADP) has reported impressive first-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.ADP’s earnings per share of $2.3 beat the consensus estimate by 5.9% and increased 12% from the year-ago quarter. Total revenues of $4.8 billion beat the consensus estimate by 1.5% and grew 7.1% on a year-over-year basis.The ADP stock has gained 25.7% year to date, outperforming th ...