Shares of Automatic Data Processing Inc. (ADP) surged 5.02% on November 6, 2024, after the company announced a 10% increase in its quarterly cash dividend, marking the 50th consecutive year of dividend increases for the payroll processing giant.

The board of directors approved raising the quarterly dividend to $1.54 per share, equivalent to an annual rate of $6.16 per share. This move solidifies ADP's position as a 'Dividend King', an elite group of companies that have increased their dividends annually for at least 50 straight years, demonstrating the company's financial strength and commitment to shareholder returns.

ADP's President and CEO, Maria Black, expressed confidence in the company's ability to continue delivering strong results, stating, "Our dividend is a cornerstone of our long-standing commitment to our shareholders, and this increase signifies the Board's confidence in the financial strength of ADP." The dividend increase also secures ADP's spot in the S&P 500 Dividend Aristocrats Index for another year, an index comprising companies that have paid higher dividends for at least 25 consecutive years.