Dividend Aristocrat Automatic Data Processing (ADP) will raise its quarterly dividend by 2.2 percent to 93 cents per share in 2020. This follows a 15.2 percent to $0.91 per share in 2019 and will mark 46 consecutive years of dividend increases.

The new quarterly dividend rate of $0.93 per share will be distributed on January 1, 2021 to shareholders of record on December 11, 2020. A new annual rate of $3.72 per share yields 2.2% at a stock price of $171.

"This increase in our quarterly dividend represents a strong signal of the board's confidence in ADP's future and our ability to navigate the present economic uncertainty. Our dividend is a cornerstone to our long-standing commitment to shareholder-friendly actions, and we are pleased to increase it for a 46th consecutive year," said Carlos Rodriguez in the company's press release dated November 11, 2020 announcing this dividend hike.

Automatic Data Processing will now pay an estimated $1.6 billion in dividends to its shareholders annually. This new dividend hike is the smallest since 2014, when the dividend was hiked by 2.1 percent.

Automatic Data Processing, Inc. (ADP) is a provider of human capital management (HCM) solutions. The company's services include a wide range of human resource, payroll, tax, and benefits administration solutions. ADP's reportable business segments are Employer Services and Professional Employer Organization (“PEO”). ADP was founded in 1949 on an innovative idea: to help business owners focus on core business activities by freeing them up from certain non-core tasks such as payroll.