Paychex, Inc. (PAYX) To Go Ex-Dividend on January 28th

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Friday, January 16th. Shareholders of record on Wednesday, January 28th will be paid a dividend of 1.08 per share by the business services provider on Friday, February 27th. This represents a c) annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Wednesday, January 28th.

Paychex has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 3 years. Paychex has a payout ratio of 76.2% indicating that 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 $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 opened at $106.63 on Monday. The company’s 50 day moving average price is $111.88 and its two-hundred day moving average price is $124.88. The firm has a market capitalization of $38.28 billion, a P/E ratio of 24.18 and a beta of 0.91. Paychex has a fifty-two week low of $106.47 and a fifty-two week high of $161.24. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.27 and a quick ratio of 1.27.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.03. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The company had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.55 billion. During the same period in the prior year, the firm posted $1.14 EPS. The company’s quarterly revenue was up 18.3% on a year-over-year basis. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, equities analysts forecast that Paychex will post 4.99 earnings per share for the current fiscal year.

Paychex declared that its Board of Directors has authorized a share buyback program on Friday, January 16th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to purchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

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.