Paycom Software, Inc. (NYSE:PAYC) Shares Will Pay Quarterly Dividend of $0.38

Key Points

• Paycom Software declared a quarterly dividend of $0.375 per share, payable December 7 to shareholders of record on November 23. The dividend implies $1.50 in annual payments and a 0.6% yield.
• The dividend appears well covered, with a current payout ratio of 15.1% and an expected future payout ratio of 12.2% based on projected earnings.
• Paycom’s latest quarterly results exceeded expectations, with adjusted EPS of $2.78 versus the $2.38 estimate and revenue of $531.2 million, up 9.8% year over year.

Paycom Software, Inc. (NYSE:PAYC - Get Free Report) declared a quarterly dividend on Monday, November 2nd. Investors of record on Monday, November 23rd will be paid a dividend of $0.3750 per share by the software maker on Monday, December 7th. This represents a $1.50 annualized dividend and a yield of 0.6%. The ex-dividend date is Monday, November 23rd.

Paycom Software has a payout ratio of 15.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Paycom Software to earn $12.34 per share next year, which means the company should continue to be able to cover its $1.50 annual dividend with an expected future payout ratio of 12.2%.

Paycom Software Stock Performance

Shares of PAYC stock opened at $265.66 on Tuesday. The stock has a fifty day moving average price of $236.55 and a 200 day moving average price of $164.66. The company has a debt-to-equity ratio of 1.57, a quick ratio of 1.07 and a current ratio of 1.07. The stock has a market cap of $11.97 billion, a PE ratio of 28.23, a P/E/G ratio of 1.41 and a beta of 0.82. Paycom Software has a 1 year low of $104.90 and a 1 year high of $275.22.

Paycom Software (NYSE:PAYC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 EPS for the quarter, beating the consensus estimate of $2.38 by $0.40. The business had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The company's quarterly revenue was up 9.8% on a year-over-year basis. During the same period in the prior year, the business earned $2.06 earnings per share. Sell-side analysts forecast that Paycom Software will post 10.80 earnings per share for the current fiscal year.

About Paycom Software

Paycom Software, Inc is a provider of cloud-based human capital management (HCM) software designed to help businesses manage employee-related processes through a unified platform. Its solutions support payroll, human resources, talent acquisition and management, time and labor management, compliance, and employee engagement.

The company's software is intended to allow employers and employees to enter and manage workforce information within a single system. Its offerings include payroll processing, benefits administration, expense management, scheduling, performance management, learning, and recruiting tools.

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