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

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Thursday, July 16th. Investors 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) dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Tuesday, July 28th.

Paychex has increased 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 84.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. 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

PAYX stock opened at $114.70 on Friday. The stock has a 50-day moving average price of $99.64 and a two-hundred day moving average price of $98.28. Paychex has a 12-month low of $85.45 and a 12-month high of $148.11. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.22. The company has a market cap of $41.10 billion, a PE ratio of 23.46 and a beta of 0.84.

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

Paychex Company Profile

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.