Top Dividend Growth Stock Paychex, Inc. Announces Quarterly Cash Dividend
PAYX Stock Declares Dividend
Payroll and human resources management may not be the most exciting business, but it is capable of providing a solid income stream to investors.
Case in point: Paychex, Inc. (NASDAQ: PAYX), which operates in the payroll, human resources, and benefits outsourcing industry. The company is a leader in the sector, serving over 600,000 payroll clients in more than 100 locations.
With solid operations, Paychex can pay a stable dividend. Last week, the company’s board of directors declared a regular quarterly cash dividend of $0.50 per share, payable on February 15. To be eligible for that payment, investors need to own shares before the ex-dividend date, which is January 30. (Source: “Paychex Declares Quarterly Dividend,” Paychex, Inc., January 19, 2018.)
At its current share price, PAYX stock offers an annual yield of 2.9%.
Of course, there are plenty of higher-yielding stocks trading in the market, but Paychex, Inc. still stands out due to its strong dividend growth.
Consider this: in the beginning of 2008, the company was paying quarterly dividends of $0.30 per share. Today, the amount stands at $0.50 per share. That translates to an increase of 66.7%. (Source: “Paychex, Inc. Dividend Date & History,” NASDAQ, last accessed January 22, 2018.)
Paychex’s rising dividends are backed by a growing business. The company reported earnings last month, for the three months ended November 30, 2017. Paychex generated $826.5 million of revenue in that quarter, representing a seven percent increase year-over-year. Adjusted earnings came in at $0.59 per diluted share, which is up five percent from the year-ago period. (Source: “Paychex, Inc. Reports Second Quarter Results,” Paychex, Inc., December 21, 2017.)
With growing financials, PAYX stock will likely have more good news for dividend investors down the road.
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