Paycom declares quarterly dividend of $0.375 per share

OKLAHOMA CITY - Paycom Software, Inc. (NYSE:PAYC) announced Monday that its Board of Directors has declared a quarterly cash dividend of $0.375 per share of common stock, representing an annual yield of 0.8% at current prices.

The dividend will be paid on December 8, 2025, to stockholders of record as of the close of business on November 24, 2025, according to a company press release. This comes just ahead of the company’s upcoming earnings report scheduled for November 5.

Paycom, which provides cloud-based human capital management software, offers automated HR and payroll technology solutions for businesses. The company utilizes a single database platform and has been in operation for over 25 years. With impressive gross profit margins of 86.17% and a strong balance sheet that holds more cash than debt, Paycom has established a solid financial foundation in the competitive HR technology sector.

The Oklahoma City-based firm trades on the New York Stock Exchange under the ticker symbol PAYC. With a market capitalization of $10.41 billion and a P/E ratio of 25, InvestingPro analysis suggests the stock is currently trading below its Fair Value, potentially offering an opportunity for investors. InvestingPro’s comprehensive research report on Paycom is available among its 1,400+ deep-dive analyses of US equities.

In other recent news, Paycom Software has been the focus of several analyst reports and company announcements. Jefferies adjusted its price target for Paycom Software to $225 from $250, maintaining a Hold rating. The firm anticipates that Paycom will meet the consensus expectation of a 10.5% growth in recurring revenue for the third quarter and exceed EBITDA estimates. Meanwhile, Guggenheim initiated coverage on Paycom Software with a Buy rating and a $270 price target, citing the company’s AI potential despite industry concerns over workforce reductions.

Additionally, TD Cowen lowered its price target for Paycom to $246 from $254, highlighting concerns over free cash flow but noting a "healthy revenue beat and raise" from the company. Paycom Software also announced the retirement of director Felicia Williams, effective September 2025, which will reduce the Board size from eight to seven directors. Furthermore, the company revealed leadership changes, with Shane Hadlock taking on an expanded role as both chief client officer and chief technology officer. These developments provide investors with a range of insights into Paycom Software’s current strategic and operational directions.

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