Paychex, Inc. (NASDAQ:PAYX) to Issue 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 annualized dividend and a yield of 4.3%. The ex-dividend date is Monday, October 26th.

Paychex has raised its dividend by an average of 0.1% annually over the last three years and has increased its dividend annually for the last 3 consecutive years. Paychex has a dividend 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 decline. Equities 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 Price Performance

Shares of NASDAQ:PAYX opened at $110.78 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.23. The company has a market cap of $39.44 billion, a P/E ratio of 21.98, a PEG ratio of 2.27 and a beta of 0.86. Paychex has a 52 week low of $85.45 and a 52 week high of $128.78. The company has a 50-day moving average price of $114.74 and a 200 day moving average price of $105.11.

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

Insiders Place Their Bets

In other Paychex news, CFO Robert Schrader sold 2,600 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $115.09, for a total transaction of $299,234.00. Following the completion of the sale, the chief financial officer directly owned 18,547 shares in the company, valued at $2,134,574.23. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Paychex

A number of institutional investors and hedge funds have recently modified their holdings of the business. Parkside Financial Bank & Trust boosted its holdings in shares of Paychex by 6.3% during the 2nd quarter. Parkside Financial Bank & Trust now owns 1,519 shares of the business services provider’s stock worth $149,000 after buying an additional 90 shares during the period. Armbruster Capital Management Inc. grew its stake in shares of Paychex by 0.5% during the first quarter. Armbruster Capital Management Inc. now owns 20,299 shares of the business services provider’s stock worth $1,870,000 after acquiring an additional 107 shares during the last quarter. Seelaus Asset Management LLC lifted its holdings in shares of Paychex by 2.0% during the first quarter. Seelaus Asset Management LLC now owns 5,464 shares of the business services provider’s stock worth $503,000 after purchasing an additional 107 shares during the period. United Community Bank lifted its holdings in Paychex by 3.1% in the second quarter. United Community Bank now owns 3,635 shares of the business services provider’s stock valued at $357,000 after acquiring an additional 110 shares during the period. Finally, Bryn Mawr Trust Advisors LLC increased its holdings in Paychex by 4.3% in the first quarter. Bryn Mawr Trust Advisors LLC now owns 2,678 shares of the business services provider’s stock valued at $247,000 after buying an additional 111 shares in the last quarter. 83.47% of the stock is owned by institutional investors and hedge funds.

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.