Paychex Pumps Up Dividend by 10%—Still a Cash Machine with 32% Margins

Follow MaxDividends! Don’t miss out on fresh dividend stock picks and insights!

Paychex (NASDAQ: PAYX), the HR and payroll heavyweight serving over 745,000 businesses, just bumped its quarterly dividend by 10.2% to $1.08 per share. That’s up from $0.98, payable May 29 to shareholders of record on May 12.

Paychex (NASDAQ: PAYX)

Financial Score: 98 / 99

Quick Tip

To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.

Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.

In fiscal 2024 (ended May 31), Paychex pulled in $5.28 billion in revenue, up 5% year-over-year, with a net income of $1.69 billion—translating to a net margin of 32% . Operating income hit $2.17 billion, and adjusted EPS rose 11% to $4.72. Free cash flow was a robust $1.9 billion, supporting $1.3 billion in dividend payouts and $169 million in share buybacks.

The company's balance sheet remains strong, with $1.6 billion in cash and investments as of May 31, 2024, and manageable debt levels .