Automatic Data Processing (NASDAQ:ADP), a leading provider of payroll processing and other human resource and tax services to businesses of varying sizes around the globe, announced on Tuesday that its board approved a 10% increase in its annual dividend marking the 37th year of continued dividend increases by the payroll giant. The increase will result in a new quarterly dividend of 39.5 cents per shares, up from previous quarterly dividend rate of 36 cents per share, and will cost roughly $17.1 million each payout. 
The announcement comes at a good time as uncertain economic conditions continue to send frequent jitters into the global markets, thereby increase the popularity of dividends which offer a secure income stream. The board’s decision will surely make ADP investors happy.
Private Sector Employment Increase in US
According to ADP’s latest National Employment Report, private-sector employment in the US increased by 110,000 from September to October on a seasonally adjusted basis. While services added 114K of the total 110K jobs, good-producing jobs subtracted 4K, and manufacturing jobs as a subset declined by 8K. 
We have a $57.67 Trefis price estimate for ADP, about 10% above the market estimates.