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

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, October 15th. Investors of record on Monday, October 26th will be given a dividend of $1.19 per share by the business services provider on Wednesday, November 25th. This represents a $4.76 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Monday, October 26th.

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 payout ratio of 84.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Paychex to earn $6.33 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 75.2%.

Paychex Stock Up 2.2%

Shares of NASDAQ:PAYX traded up $2.41 during mid-day trading on Thursday, reaching $110.78. 3,998,792 shares of the stock were exchanged, compared to its average volume of 3,475,291. The stock’s 50 day simple moving average is $114.93 and its 200-day simple moving average is $104.98. Paychex has a one year low of $85.45 and a one year high of $128.78. The company has a market cap of $39.44 billion, a P/E ratio of 21.98, a P/E/G ratio of 2.23 and a beta of 0.86. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.23.

Paychex (NASDAQ:PAYX) last released its earnings results on Wednesday, September 23rd. The business services provider reported $1.34 EPS for the quarter, beating the consensus estimate of $1.32 by $0.02. Paychex had a return on equity of 52.78% and a net margin of 27.35%. The firm had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same quarter in the previous year, the business posted $1.22 EPS. The business’s quarterly revenue was up 5.9% compared to the same quarter last year. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. As a group, equities research analysts predict that Paychex will post 5.96 EPS for the current year.

About Paychex

Paychex, Inc (NASDAQ: PAYX) provides payroll, human resources and employee benefits solutions for businesses of varying sizes. Its services are designed to help employers manage workforce administration, compliance and employee-related processes through integrated software and professional support.

The company’s offerings include payroll processing, time and attendance tracking, human resources administration, recruiting and onboarding tools, benefits administration, retirement services, workers’ compensation and business insurance solutions.