Paychex, Inc. Plans Quarterly Dividend of $0.50 (PAYX)

Paychex, Inc. (NASDAQ:PAYX) declared a quarterly dividend on Friday, January 19th, RTT News reports. Shareholders of record on Thursday, February 1st will be paid 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 2.90%.

Paychex has raised its dividend payment by an average of 9.6% annually over the last three years and has raised its dividend annually for the last 7 consecutive years. Paychex has a dividend 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 decline. Research 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%.

Shares of Paychex (PAYX) traded down $0.73 during midday trading on Friday, hitting $68.91. 1,662,800 shares of the company’s stock were exchanged, compared to its average volume of 2,235,725. The company has a market capitalization of $24,900.00, a P/E ratio of 29.58, a price-to-earnings-growth ratio of 3.75 and a beta of 0.99. Paychex has a fifty-two week low of $54.20 and a fifty-two week high of $70.39.

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

Several brokerages recently weighed in on PAYX. Wells Fargo & Co raised their price target on shares of Paychex from $58.00 to $60.00 and gave the company a “market perform” rating in a research report on Wednesday, October 4th. Royal Bank of Canada reissued a “sell” rating and set a $57.00 price target on shares of Paychex in a research report on Wednesday, November 15th. Bank of America downgraded shares of Paychex from a “buy” rating to a “neutral” rating and set a $73.00 price target for the company. in a research report on Tuesday, January 9th. Citigroup reissued a “sell” rating and set a $53.00 price target on shares of Paychex in a research report on Monday, October 2nd. Finally, Morgan Stanley reissued an “equal weight” rating and set a $59.00 price target (up previously from $55.00) on shares of Paychex in a research report on Wednesday, October 4th. Two equities research analysts have rated the stock with a sell rating and twelve have issued a hold rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $62.10.

In other news, insider Michael E. Gioja sold 34,311 shares of Paychex stock in a transaction on Thursday, January 4th. The shares were sold at an average price of $68.91, for a total transaction of $2,364,371.01. Following the transaction, the insider now owns 63,374 shares in the company, valued at approximately $4,367,102.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Jennifer R. Vossler sold 10,000 shares of Paychex stock in a transaction on Tuesday, January 16th. The stock was sold at an average price of $68.29, for a total transaction of $682,900.00. Following the transaction, the vice president now owns 31,578 shares in the company, valued at approximately $2,156,461.62. The disclosure for this sale can be found here. In the last ninety days, insiders sold 50,311 shares of company stock valued at $3,429,471. 11.70% of the stock is currently owned by insiders.

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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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