Paychex, Inc. (PAYX) to Issue $0.50 Quarterly Dividend

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Friday, January 19th, RTT News reports. Investors of record on Thursday, February 1st will be given a dividend of 0.50 per share by the business services provider on Thursday, February 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.88%.

Paychex has raised its dividend by an average of 9.6% per year over the last three years and has increased its dividend every year for the last 7 years. Paychex has a 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 fall. Equities analysts expect Paychex to earn $2.74 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 73.0%.

Paychex (NASDAQ PAYX) opened at $69.49 on Friday. Paychex has a twelve month low of $54.20 and a twelve month high of $70.39. The stock has a market capitalization of $24,751.47, a PE ratio of 29.82, a P/E/G ratio of 3.71 and a beta of 0.99.

Paychex (NASDAQ:PAYX) last released its quarterly earnings results on Thursday, December 21st. The business services provider reported $0.59 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.59. Paychex had a return on equity of 42.80% and a net margin of 26.02%. The business had revenue of $826.50 million during the quarter, compared to analysts’ expectations of $823.48 million. During the same period in the previous year, the business posted $0.56 earnings per share. The firm’s revenue for the quarter was up 7.1% compared to the same quarter last year. equities analysts predict that Paychex will post 2.38 EPS for the current fiscal year.

A number of research analysts recently issued reports on PAYX shares. Citigroup reaffirmed a “sell” rating and issued a $53.00 price target on shares of Paychex in a report on Monday, October 2nd. Robert W. Baird reaffirmed a “hold” rating and issued a $64.00 price target on shares of Paychex in a report on Wednesday, October 4th. Royal Bank of Canada reaffirmed an “underperform” rating and issued a $57.00 price target (up from $54.00) on shares of Paychex in a report on Wednesday, October 4th. BMO Capital Markets reaffirmed a “market perform” rating and issued a $62.00 price target (up from $60.00) on shares of Paychex in a report on Wednesday, October 4th. Finally, Bank of America lifted their price target on Paychex from $64.00 to $68.00 and gave the company a “buy” rating in a report on Wednesday, October 4th. Two investment analysts have rated the stock with a sell rating and twelve have assigned a hold rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $62.10.

In other Paychex news, insider Michael E. Gioja sold 34,311 shares of the business’s stock in a transaction dated Thursday, January 4th. The stock was sold at an average price of $68.91, for a total transaction of $2,364,371.01. Following the completion of the sale, the insider now directly owns 63,374 shares of the company’s stock, valued at approximately $4,367,102.34. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP John B. Gibson sold 6,000 shares of the business’s stock in a transaction dated Tuesday, October 31st. The stock was sold at an average price of $63.70, for a total value of $382,200.00. Following the sale, the vice president now directly owns 21,758 shares of the company’s stock, valued at $1,385,984.60. The disclosure for this sale can be found here. Insiders have sold a total of 50,311 shares of company stock valued at $3,429,471 over the last three months. Company insiders own 11.70% of the company’s stock.

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Paychex Company Profile

Paychex, Inc is a provider of integrated human capital management (HCM) solutions for payroll, human resource (HR), retirement and insurance services for small- to medium-sized businesses in the United States. The Company also has operations in Germany. The Company offers services, including Payroll processing, Human Resource Services, and Accounting and Financial Services.

Dividend History for Paychex (NASDAQ:PAYX)

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