DOW JONES NEWSWIRES
Automatic Data Processing Inc. (ADP) raised its quarterly
dividend by 3%, marking the 35th year in a row the payroll
processor and human-resources outsourcing company has raised the
payout.
The increase, by a penny to 34 cents a share, will cost the
company an additional $5 million for the quarter, and bring the
annual dividend to $1.36 a share. The quarterly dividend is payable
Jan. 1 to shareholders of record at Dec. 11.
While many companies have been cutting dividends during the
downturn, there have been some exceptions, notably makers of
consumer staples, which have been sweetening their payouts.
ADP last week posted better-than-expected fiscal first-quarter
earnings, though mounting unemployment continued to trim the number
of workers at clients' businesses. The company also raised the low
end of its cautious fiscal-year view last week, amid signs the
economy is stabilizing and company expectations that it can return
to revenue growth in the high-single digits on a percentage basis
when things turn up.
Shares were up 18 cents at $43.13 in recent trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;