Paychex raised its quarterly dividend 8.57% today from $.35 to $.38 per share. The record date is 8/1/14 and the pay date is 8/15/14. The new yield for PAYX is 3.64%. I purchased some more shares on Tuesday and will likely add more this month. The PE is a little high, but the company appears solid and has been moving up in price recently.
Since I own 36.38 shares, this will increase my yearly dividends by $4.37.
Hmmm I dont know that stock. I will check em out! Decent yield and good raise on it.
ReplyDeleteHi AG,
DeletePaychex provides payroll, human resource services, and other accounting solutions for small and medium businesses. The PE is in the mid 20's so it is not cheap. Hopefully with an improving employment picture, Paychex should continue to grow and more importantly keep increasing dividends.
MDP
I guess they are in direct competition with ADP then? I will have to look into this stock. Congrats on the pay raise.
DeleteI like PAYX because like ADP there's very little capex and if I remember correctly essentially no debt. It's kind of a quasi insurance company where they get to earn the interest on the cash in their customers' accounts to handle the payments. Great business model and I guess I need to look at them again to see how their valuation is. Congrats on the dividend increase.
ReplyDeletePIP,
DeleteI actually like both PAYX and ADP. Both should do well with the improving employment picture. PAYX isn't cheap, but hopefully the earnings will catch up to the price. The recent raise is an encouraging sign and at 3.6% I will add more shares.
Thanks for the comment.
MDP