Paychex, Inc. (NASDAQ:PAYX) Announces $1.19 Quarterly Dividend

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, July 16th. Shareholders of record on Tuesday, July 28th will be paid a dividend of 1.19 per share by the business services provider on Friday, August 28th. This represents a c) annualized dividend and a yield of 4.1%. The ex-dividend date is Tuesday, July 28th.

Paychex has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 3 years. Paychex has a dividend payout ratio of 84.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities research analysts expect Paychex to earn $6.34 per share next year, which means the company should continue to be able to cover its $4.76 annual dividend with an expected future payout ratio of 75.1%.

Paychex Price Performance

Shares of PAYX stock opened at $114.70 on Friday. The firm has a fifty day moving average of $99.64 and a two-hundred day moving average of $98.28. The firm has a market cap of $41.10 billion, a P/E ratio of 23.46 and a beta of 0.84. Paychex has a 1-year low of $85.45 and a 1-year high of $148.11. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.26 and a quick ratio of 1.26.

Paychex (NASDAQ:PAYX) last issued its earnings results on Wednesday, June 24th. The business services provider reported $1.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.31 by $0.01. Paychex had a net margin of 27.03% and a return on equity of 50.90%. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the prior year, the business posted $1.19 EPS. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. Paychex has set its FY 2027 guidance at 5.900-6.010 EPS. As a group, research analysts anticipate that Paychex will post 5.96 earnings per share for the current fiscal year.

Insider Activity at Paychex

In related news, Director Joseph M. Tucci sold 3,907 shares of the stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $98.25, for a total value of $383,862.75. Following the sale, the director owned 67,364 shares of the company’s stock, valued at $6,618,513. This trade represents a 5.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in shares of Paychex by 12.1% during the fourth quarter. Vanguard Group Inc. now owns 42,348,625 shares of the business services provider’s stock valued at $4,750,669,000 after buying an additional 4,583,157 shares during the last quarter. Capital International Investors raised its stake in Paychex by 59.1% during the 4th quarter. Capital International Investors now owns 30,265,174 shares of the business services provider’s stock valued at $3,395,583,000 after acquiring an additional 11,243,295 shares in the last quarter. State Street Corp raised its stake in Paychex by 1.6% during the 4th quarter. State Street Corp now owns 13,988,393 shares of the business services provider’s stock valued at $1,569,218,000 after acquiring an additional 216,045 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Paychex by 2.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,550,173 shares of the business services provider’s stock worth $1,295,698,000 after purchasing an additional 263,152 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Paychex by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 9,705,424 shares of the business services provider’s stock valued at $1,093,958,000 after purchasing an additional 78,760 shares during the period. 83.47% of the stock is owned by institutional investors and hedge funds.

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.