Paychex, Inc. (NASDAQ:PAYX) Plans Quarterly Dividend of $1.08

Key Points

• Paychex, Inc. has declared a quarterly dividend of $1.08 per share, set to be paid on November 26th, reflecting an annualized dividend yield of 3.4%.
• The company has a dividend payout ratio of 76.2%, indicating current earnings can cover the dividend, but future sustainability may be at risk if earnings decline.
• Paychex reported earnings per share of $1.22 for the last quarter, surpassing estimates, and the firm's revenue increased by 16.8% year-over-year, totaling $1.54 billion.

Paychex, Inc. (NASDAQ:PAYX - Get Free Report) declared a quarterly dividend on Thursday, October 9th, RTT News reports. Stockholders of record on Friday, November 7th will be given a dividend of 1.08 per share by the business services provider on Wednesday, November 26th. This represents a c) annualized dividend and a dividend yield of 3.4%.

Paychex has a dividend payout ratio of 76.2% 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 $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 Trading Up 0.1%

PAYX opened at $126.67 on Thursday. The firm's fifty day simple moving average is $134.43 and its 200 day simple moving average is $143.99. The stock has a market capitalization of $45.59 billion, a P/E ratio of 28.53, a P/E/G ratio of 2.90 and a beta of 0.92. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.15. Paychex has a 12 month low of $119.02 and a 12 month high of $161.24.

Paychex (NASDAQ:PAYX - Get Free Report) last released its quarterly earnings results on Tuesday, September 30th. The business services provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.02. The firm had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. Paychex had a return on equity of 45.17% and a net margin of 27.85%.The company's revenue for the quarter was up 16.8% on a year-over-year basis. During the same quarter last year, the business posted $1.16 EPS. Paychex has set its FY 2026 guidance at 5.428-5.528 EPS. As a group, research analysts anticipate that Paychex will post 4.99 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO John B. Gibson sold 12,370 shares of Paychex stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $141.92, for a total transaction of $1,755,550.40. Following the completion of the sale, the chief executive officer owned 81,755 shares of the company's stock, valued at approximately $11,602,669.60. This trade represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Paychex

Several hedge funds and other institutional investors have recently bought and sold shares of PAYX. Brighton Jones LLC boosted its stake in shares of Paychex by 26.3% in the fourth quarter. Brighton Jones LLC now owns 5,710 shares of the business services provider's stock valued at $801,000 after buying an additional 1,190 shares during the period. Bison Wealth LLC lifted its position in Paychex by 3.0% during the fourth quarter. Bison Wealth LLC now owns 4,035 shares of the business services provider's stock worth $566,000 after purchasing an additional 117 shares during the period. Farther Finance Advisors LLC grew its stake in Paychex by 18.3% during the first quarter. Farther Finance Advisors LLC now owns 12,030 shares of the business services provider's stock worth $1,860,000 after buying an additional 1,858 shares in the last quarter. Pallas Capital Advisors LLC increased its holdings in Paychex by 4.1% in the 1st quarter. Pallas Capital Advisors LLC now owns 3,541 shares of the business services provider's stock valued at $546,000 after buying an additional 138 shares during the period. Finally, Wealthcare Advisory Partners LLC lifted its holdings in shares of Paychex by 2.0% during the 1st quarter. Wealthcare Advisory Partners LLC now owns 18,702 shares of the business services provider's stock worth $2,885,000 after acquiring an additional 366 shares during the period. Institutional investors and hedge funds own 83.47% of the company's stock.

About Paychex

Paychex, Inc, together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.

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