Automatic Data Processing (XTER:ADP) Dividend Payout Ratio: 0.50 (As of Mar. 2026) — 15% Below Median


XTER:ADP Automatic Data Processing Inc XTER:ADP
88 GF Score
Price €196.52
GF Value €265.59
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Automatic Data Processing Dividend Payout Ratio?

Automatic Data Processing XTER:ADP +0.74% 88 Dividend Payout Ratio is 0.50 as of Mar. 2026, which is 15% below its 10-year median of 0.59. GuruFocus rates XTER:ADP with a GF Score™ of 88/100 and a GF Value™ of €265.59 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 866 Software companies, Automatic Data Processing ranks worse than 68.71% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Automatic Data Processing's Dividend Payout Ratio for the months ended in Mar. 2026 was 0.50.

The historical rank and industry rank for Automatic Data Processing's Dividend Payout Ratio or its related term are showing as below:

XTER:ADP' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.32   Med: 0.59   Max: 0.64
Current: 0.32

During the past 13 years, the highest Dividend Payout Ratio of Automatic Data Processing was 0.64. The lowest was 0.32. And the median was 0.59.

XTER:ADP's Dividend Payout Ratio is ranked worse than
68.71% of 866 companies
in the Software industry
Industry Median: 0.41 vs XTER:ADP: 0.32

As of today (2026-06-30), the Dividend Yield % of Automatic Data Processing is 2.25%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Automatic Data Processing was 3.43%. The lowest was 1.54%. And the median was 2.00%.

Automatic Data Processing's Dividends per Share for the months ended in Mar. 2026 was €1.47.

During the past 12 months, Automatic Data Processing's average Dividends Per Share Growth Rate was 10.20% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 14.10% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 12.20% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 12.50% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Automatic Data Processing was 27.30% per year. The lowest was 6.10% per year. And the median was 14.30% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Automatic Data Processing (XTER:ADP) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Automatic Data Processing Dividend Payout Ratio Related Terms

Automatic Data Processing Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Automatic Data Processing's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Automatic Data Processing Dividend Payout Ratio Chart

Automatic Data Processing Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.31 0.58 0.58 0.59 0.14

Automatic Data Processing Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.65 0.50

XTER:ADP vs SNOW, DDOG, ADBE: Dividend Payout Ratio Comparison

For the Software - Application subindustry, Automatic Data Processing's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Automatic Data Processing Dividend Payout Ratio vs Software Industry

For the Software industry and Technology sector, Automatic Data Processing's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Dividend Payout Ratio falls into.


XTER:ADP
88GF Score
Automatic Data Processing Inc XTER:ADP
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Automatic Data Processing Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Automatic Data Processing's Dividend Payout Ratio for the fiscal year that ended in Jun. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Jun. 2025 )/ EPS without NRI (A: Jun. 2025 )
=1.214/ 8.679
=0.14

Automatic Data Processing's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=1.47/ 2.915
=0.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.50 mean?
Automatic Data Processing (XTER:ADP) has a Dividend Payout Ratio of 0.50 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Automatic Data Processing and its competitors. This is 15% below median its historical median of 0.59. Over the past decade, Automatic Data Processing's Dividend Payout Ratio has ranged from 0.32 to 0.64. According to the industry distribution chart, Automatic Data Processing ranks #595 out of 866 companies in the Software industry, placing it in the top 68.7%.
Is Automatic Data Processing's Dividend Payout Ratio too high?
Automatic Data Processing's current Dividend Payout Ratio of 0.50 is 15% below median its 10-year median of 0.59. Over the past 10 years, this metric has ranged from a low of 0.32 to a high of 0.64. The Software industry median Dividend Payout Ratio is 0.41. Automatic Data Processing's value of 0.50 is 22% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #595 out of 866 companies in the Software industry, which is below the industry midpoint. Overall, Automatic Data Processing has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Dividend Payout Ratio compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #595 out of 866 companies for Dividend Payout Ratio. This places Automatic Data Processing in the lower half of its industry. The industry median Dividend Payout Ratio is 0.41. Automatic Data Processing's value of 0.50 is 22% above this benchmark. Historically, Automatic Data Processing's own Dividend Payout Ratio has ranged from 0.32 to 0.64 over the past decade. While the company's 10-year median is 0.59 vs. the industry median of 0.41, Automatic Data Processing has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.41, based on 866 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Dividend Payout Ratio of 0.50 is 22% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Dividend Payout Ratio is 0.50, which is 15% below median its own 10-year median of 0.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Automatic Data Processing stock overvalued right now?
Based on GuruFocus' analysis, Automatic Data Processing (XTER:ADP) is currently considered Modestly Undervalued. The stock's GF Value™ is €265.59, compared to a current price of €196.52 — trading 26% below its estimated fair value. The current Dividend Payout Ratio is 0.50, which is 15% below median its 10-year median of 0.59 and 22% above the Software industry median of 0.41. Automatic Data Processing's overall GF Score™ is 88/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Automatic Data Processing (XTER:ADP), the current Dividend Payout Ratio is 0.50 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Automatic Data Processing (XTER:ADP) Overvalued in 2026?

Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued. The current stock price of €196.52 is trading 26% below its estimated GF Value™ of €265.59. GuruFocus considers Automatic Data Processing to be Modestly Undervalued.

Key valuation signals for XTER:ADP:

  • Dividend Payout Ratio: 0.50 (15% below median its 10-year median of 0.59)
  • GF Value™: €265.59 vs. price of €196.52 (26% below fair value)
  • GF Score™: 88/100 with 2 warning signs
  • Industry Position: 22% above the Software median (#595 of 866)

No single metric tells the full story. See the XTER:ADP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Automatic Data Processing Business Description

Address One ADP Boulevard, Roseland, NJ, USA, 07068
Automatic Data Processing, or ADP, is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large market shares in its core markets. As of fiscal 2025, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
88GF Score

Get the complete analysis for XTER:ADP

Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€196.52
Price
€265.59
GF Value