Paychex, Inc. (PAYX) to Issue Quarterly Dividend of $1.08 on February 27th

Paychex, Inc. (NASDAQ:PAYX) announced a quarterly dividend on Friday, January 16th. Shareholders of record on Wednesday, January 28th will be paid a dividend of 1.08 per share by the business services provider on Friday, February 27th. This represents a c) dividend on an annualized basis and a yield of 3.9%. The ex-dividend date of this dividend is Wednesday, January 28th.

Paychex has increased its dividend payment 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 76.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. 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 Price Performance

PAYX opened at $111.18 on Friday. The company has a market capitalization of $39.91 billion, a price-to-earnings ratio of 25.21 and a beta of 0.91. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 1.17. Paychex has a 12-month low of $107.80 and a 12-month high of $161.24. The business’s fifty day simple moving average is $112.25 and its 200-day simple moving average is $126.36.

Paychex (NASDAQ:PAYX) last released its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.23 by $0.03. The company had revenue of $1.56 billion during the quarter, compared to analyst estimates of $1.55 billion. Paychex had a net margin of 26.45% and a return on equity of 46.38%. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. On average, equities research analysts anticipate that Paychex will post 4.99 earnings per share for the current fiscal 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.