Paychex raises dividend by 10% to $1.08 per share

Published 02/05/2025, 14:14
Paychex raises dividend by 10% to $1.08 per share

ROCHESTER, N.Y. - Paychex, Inc. (NASDAQ:PAYX), a leading provider of integrated human capital management solutions with a market capitalization of $52.8 billion, has announced an increase in its quarterly cash dividend. The company, which boasts an impressive 38-year streak of maintaining dividend payments and has raised dividends for 11 consecutive years according to InvestingPro, currently offers a 2.67% dividend yield. The company’s Board of[Get access to 12+ additional exclusive ProTips and comprehensive analysis with InvestingPro’s detailed research reports, available for 1,400+ top US stocks.]

In other recent news, Paychex Inc. has completed the acquisition of Paycor HCM, Inc. for approximately $4.1 billion. This strategic move is expected to enhance Paychex’s technology and service capabilities, with anticipated annual cost synergies of over $80 million by fiscal 2026. The acquisition aims to accelerate sales growth and product innovation, contributing positively to Paychex’s earnings per share in the same fiscal year. In a related financial maneuver, Paychex has issued $4.2 billion in senior notes, with proceeds earmarked for financing the Paycor acquisition and other corporate purposes. The notes are divided into three tranches with varying maturities and interest rates, reflecting the company’s strategy to secure long-term financing. TD Cowen has maintained its Hold rating on Paychex, with a price target of $147, noting the company’s strong operational performance despite economic uncertainties. The firm highlighted Paychex’s successful management of controllable factors and its commendable cost management. These developments illustrate Paychex’s proactive approach in navigating market challenges and expanding its market reach.

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