Paychex Inc.
S&P 500Last update: May 9, 2026 at 09:32
Dividend Safety Rating
PAYX's dividend appears safe and well-supported. Strengths include a 21.6x interest coverage & 20.5% net debt / total assets. Areas of concern: 95.4% earnings payout ratio & 77.8% cfo payout ratio. The dividend has been growing at a 11.22% 5-year CAGR.
Based on 15 of 15 metrics
Strengths
- Interest Coverage: 21.6xEarnings cover interest payments many times over.
- Return on Equity: 40.2%Strong return on equity reflects efficient profit generation.
- Operating Margin: 44.4%Healthy operating margin provides a wide buffer.
Risks
- Earnings Payout Ratio: 95.4%High earnings payout ratio leaves little safety margin.
- CFO Payout Ratio: 77.8%Operating cash flow leaves little room for the payout.
Payout & Coverage
CautionBalance Sheet
CautionProfitability
Very SafeDividend Track Record
Very SafeAbout Paychex Inc.
Paychex Inc. is a leading provider of integrated human capital management (HCM) solutions, specializing in payroll, human resources, employee benefits, retirement plans, and business insurance services. The company delivers a comprehensive suite of cloud-based technology through its Paychex Flex platform, enabling businesses to streamline payroll processing, automate tax administration, manage time and attendance, handle talent acquisition with AI-assisted tools, and access employee engagement features like digital perks marketplaces. Paychex offers flexible support options, including dedicated payroll specialists, HR business partners, and compliance expertise to monitor regulatory changes across federal, state, and local levels. It serves small- to medium-sized businesses, as well as enterprises, with outsourcing solutions such as administrative service organizations (ASO) and professional employer organizations (PEO), alongside subsidiaries providing tailored payroll and HR options. Operating primarily in the U.S. and parts of Northern Europe like Germany and Denmark, Paychex simplifies complex workforce management, allowing companies to focus on growth and operations. Founded in 1971 and headquartered in Rochester, New York, it supports a wide range of industries by fostering efficiency and innovation in HR technology.
Dividend Overview
Dividend Yield
4.72%
Annual Dividend
$4.43
Frequency
Quarterly
Payout Ratio
95.36%
FCF Payout Ratio
74.36%
Stock Price
$93.93
52-Week Range
$85.45 – $161.24
Dividend History (2016–2025)
PAYX annual dividend per share and yield history
Earnings & Profitability
PAYX earnings per share and net profit margin
Key Dates
Next Ex-Dividend Date
May 13, 2026
Next Payment Date
May 29, 2026
Dividend Growth
3-Year Dividend CAGR
11.68%
5-Year Dividend CAGR
11.22%
10-Year Dividend CAGR
10.18%
3-Year Total Growth
39.27%
5-Year Total Growth
70.16%
10-Year Total Growth
163.75%
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Frequently Asked Questions
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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.
Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.
Market data provided by Twelve Data.