Paychex (PAYX) Declares $0.89 Dividend
Paychex said on April 28, 2023 that its board of directors declared a regular quarterly dividend of $0.89 per share ($3.56 annualized). Previously, the company paid $0.79 per share.
Shares must be purchased before the ex-div date of May 10, 2023 to qualify for the dividend. Shareholders of record as of May 11, 2023 will receive the payment on May 25, 2023.
At the current share price of $109.86 / share, the stock's dividend yield is 3.24%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.84%, the lowest has been 1.93%, and the highest has been 4.92%. The standard deviation of yields is 0.45 (n=236).
The current dividend yield is 0.89 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.76. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.27%, demonstrating that it has increased its dividend over time.
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What is the Fund Sentiment?
There are 2264 funds or institutions reporting positions in Paychex. This is a decrease of 13 owner(s) or 0.57% in the last quarter. Average portfolio weight of all funds dedicated to PAYX is 0.33%, an increase of 20.11%. Total shares owned by institutions increased in the last three months by 0.22% to 287,191K shares. 
The put/call ratio of PAYX is 0.60, indicating a bullish outlook.
Analyst Price Forecast Suggests 12.93% Upside
As of April 24, 2023, the average one-year price target for Paychex is 124.07. The forecasts range from a low of 106.05 to a high of $147.00. The average price target represents an increase of 12.93% from its latest reported closing price of 109.86.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Paychex is 5,067MM, an increase of 2.95%. The projected annual non-GAAP EPS is 4.27.
What are Other Shareholders Doing?
Capital International Investors holds 13,967K shares representing 3.87% ownership of the company. In it's prior filing, the firm reported owning 14,672K shares, representing a decrease of 5.05%. The firm decreased its portfolio allocation in PAYX by 9.78% over the last quarter.
Bank of New York Mellon holds 10,749K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 10,894K shares, representing a decrease of 1.36%. The firm decreased its portfolio allocation in PAYX by 4.41% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 9,862K shares representing 2.74% ownership of the company. In it's prior filing, the firm reported owning 9,666K shares, representing an increase of 1.98%. The firm decreased its portfolio allocation in PAYX by 2.97% over the last quarter.
Wells Fargo holds 9,745K shares representing 2.70% ownership of the company. In it's prior filing, the firm reported owning 9,711K shares, representing an increase of 0.36%. The firm decreased its portfolio allocation in PAYX by 4.81% over the last quarter.
Bank Of America holds 9,229K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 9,104K shares, representing an increase of 1.36%. The firm decreased its portfolio allocation in PAYX by 0.50% over the last quarter.
Paychex Background Information
(This description is provided by the company.)
Paychex, Inc. is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex served more than 680,000 payroll clients as of May 31, 2020 across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees.
This story originally appeared on Fintel.