Paychex, Inc. (NASDAQ:PAYX) Shares Will Pay Quarterly Dividend of $1.19

Key Points

• Paychex declared a quarterly dividend of $1.19 per share, payable November 25 to shareholders of record October 26. The annualized dividend is $4.76 per share, representing a 4.3% yield.
• The dividend is currently supported by earnings, with an 84.0% payout ratio; analysts expect that ratio to improve to approximately 75.2% next year based on projected EPS of $6.33.
• Paychex recently exceeded quarterly EPS estimates, reporting $1.34 versus the $1.32 consensus, while revenue rose 5.9% year over year. Despite this performance, analysts maintain a consensus “Hold” rating with an average price target of $127.59.

Paychex, Inc. (NASDAQ:PAYX - Get Free Report) declared a quarterly dividend on Thursday, October 15th. Stockholders 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 payment 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. 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%

PAYX stock traded up $2.41 during trading on Thursday, reaching $110.78. The stock had a trading volume of 3,998,792 shares, compared to its average volume of 3,475,291. Paychex has a 1-year low of $85.45 and a 1-year high of $128.78. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.23. The company has a market capitalization of $39.44 billion, a P/E ratio of 21.98, a PEG ratio of 2.23 and a beta of 0.86. The firm has a fifty day moving average price of $114.93 and a 200 day moving average price of $104.98.

Paychex (NASDAQ:PAYX - Get Free Report) last issued its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.63 billion. Paychex had a net margin of 27.35% and a return on equity of 52.78%. The business's revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.22 earnings per share. Paychex has set its FY 2027 guidance at 5.896-6.006 EPS. On average, equities analysts anticipate that Paychex will post 5.96 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on PAYX shares. Guggenheim reiterated a "neutral" rating on shares of Paychex in a research report on Thursday, September 17th. Stifel Nicolaus reduced their price objective on shares of Paychex from $130.00 to $112.00 and set a "hold" rating for the company in a research note on Thursday, September 24th. JPMorgan Chase & Co. upgraded shares of Paychex from an "underweight" rating to a "neutral" rating and raised their target price for the stock from $105.00 to $115.00 in a report on Thursday, September 24th. BMO Capital Markets decreased their target price on shares of Paychex from $118.00 to $113.00 and set a "market perform" rating for the company in a report on Thursday, September 24th. Finally, Cantor Fitzgerald dropped their target price on shares of Paychex from $112.00 to $96.00 and set an "underweight" rating on the stock in a research report on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Paychex presently has a consensus rating of "Hold" and an average price target of $127.59.

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.

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