Paychex, Inc. Declares Quarterly Dividend of $1.08 (NASDAQ:PAYX)

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Friday, January 16th. Stockholders of record on Wednesday, January 28th will be given a dividend of 1.08 per share by the business services provider on Friday, February 27th. This represents a c) annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Wednesday, January 28th.

Paychex has raised its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 3 consecutive years. Paychex has a dividend payout ratio of 76.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Paychex to earn $5.31 per share next year, which means the company should continue to be able to cover its $4.32 annual dividend with an expected future payout ratio of 81.4%.

Paychex Stock Performance

Shares of Paychex stock traded up $0.67 during midday trading on Friday, hitting $111.18. The company had a trading volume of 3,374,061 shares, compared to its average volume of 2,595,620. The company has a fifty day simple moving average of $112.27 and a 200 day simple moving average of $126.74. The stock has a market cap of $39.91 billion, a price-to-earnings ratio of 25.21 and a beta of 0.91. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex has a 12-month low of $107.80 and a 12-month high of $161.24.

Paychex (NASDAQ:PAYX) last released its earnings results on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. Paychex’s revenue was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.14 EPS. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, analysts predict that Paychex will post 4.99 earnings per share for the current fiscal year.

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.