Paychex announces quarterly dividend, plans $400M stock buyback By

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© Reuters.

ROCHESTER, N.Y. – Paychex, Inc. (NASDAQ:), a prominent provider of human capital management solutions, has declared a quarterly dividend of $0.89 per share, which is slated for distribution on February 27, 2024, to shareholders on record as of February 13, 2024.

In addition to the dividend, the company’s board of directors has approved a stock repurchase program authorizing the buyback of up to $400 million of its common stock.

This program will commence on February 1, 2024, and is set to expire on May 31, 2027.

John Gibson, President and CEO of Paychex, highlighted the company’s ongoing commitment to delivering value to its investors and superior experiences to its customers.

He remarked that the latest dividend and stock repurchase announcements are in line with the company’s tradition of providing exceptional shareholder value while also focusing on strategic investments to foster Paychex’s long-term growth.

For the fiscal year ended May 31, 2023, Paychex returned approximately $1.2 billion in dividends to shareholders, which represented 75% of its net income for that period.

This news article is based on a press release statement issued by Paychex, Inc.

InvestingPro Insights

As Paychex, Inc. (NASDAQ:PAYX) continues to demonstrate its dedication to shareholder value through dividends and stock repurchase programs, a glance at the company’s financial health and market performance offers additional insights.

With a robust market capitalization of $43.31 billion and a P/E ratio of 26.5, Paychex showcases stability in the market.

The company’s impressive gross profit margin of 71.54% over the last twelve months as of Q2 2024 underlines its efficiency in generating revenue over its direct costs.

Investors may find comfort in knowing that Paychex holds more cash than debt on its balance sheet, providing a solid foundation for ongoing operations and investment opportunities.

Furthermore, the company has not only raised its dividend for 10 consecutive years but has also maintained dividend payments for an impressive 36 consecutive years.

This track record of consistent dividend growth, coupled with a dividend yield of 2.96% as of the most recent data, reflects Paychex’s commitment to returning value to its shareholders.

For those seeking deeper analysis and additional insights, InvestingPro offers a range of InvestingPro Tips, including observations on the company’s low price volatility and its ability to cover interest payments with cash flows.

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Moreover, there are 12 more tips available on InvestingPro that could further guide investment decisions regarding Paychex.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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