Paychex declares quarterly dividend of $1.08 per share

ROCHESTER, N.Y. - Paychex, Inc. (NASDAQ:PAYX), a $52.6 billion market cap company with an impressive track record of 38 consecutive years of dividend payments, announced Wednesday that its Board of Directors has declared a regular quarterly cash dividend of $1.08 per share on the company’s common stock.

The dividend will be payable on August 29, 2025, to shareholders of record as of July 21, 2025, according to a press release statement from the HR services provider. The current dividend yield stands at 2.98%, reflecting the company’s 11-year streak of consecutive dividend increases, according to InvestingPro data.

Paychex, which provides human capital management solutions, serves nearly 800,000 customers across the United States and Europe. The company processes payroll for one out of every 11 American private sector workers, maintaining industry-leading gross profit margins of 72.35%. InvestingPro analysis reveals 12 additional key insights about Paychex’s financial performance and valuation.

The quarterly dividend announcement represents the company’s ongoing commitment to returning value to shareholders while maintaining its position in the human resources technology sector. With a "GOOD" financial health score and strong profitability metrics, Paychex continues to demonstrate solid operational performance, though current market prices exceed InvestingPro’s Fair Value estimates.

In other recent news, Paychex Inc. reported its fourth-quarter financial results for fiscal year 2025, with earnings and revenue aligning with analysts’ expectations. The company posted an adjusted diluted earnings per share of $1.19 and revenue of $1.43 billion, marking a 10% year-over-year revenue increase. Despite these steady results, Paychex’s fiscal 2026 revenue guidance of 4.5-5.5% organic growth fell short of analyst expectations, though its earnings per share guidance of 8.5-10.5% growth exceeded forecasts. Following the earnings announcement, Stifel lowered its price target for Paychex to $152, citing the revenue guidance as a concern.

Additionally, Morgan Stanley reduced its price target for Paychex to $148, expressing concerns about the company’s increased debt load post-Paycor acquisition. Meanwhile, RBC Capital maintained its price target at $165, noting mixed growth trends but acknowledging improved cost synergies from the Paycor integration. Paychex raised its Paycor cost synergy target to $90 million, supporting its fiscal 2026 operating margin guidance of 43%. The company anticipates significant revenue growth in fiscal 2026, projecting an increase of 16.5-18.5%, driven by strategic initiatives and product enhancements.

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