This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

6 Dividend Stocks for Earnings Season


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Payroll outsourcer Paychex (PAYX - Get Report) reported solid fiscal first-quarter results last month in spite of the continued weakness that's hampered the jobs market. Because this firm provides payroll processing and HR outsourcing services to small and medium-sized businesses, it follows that the firm would have outsized exposure to the staggering 9.1% unemployment rate. But Paychex has managed to trim its costs and widen its revenue net to counteract the earnings drag from jobs numbers.

As half of the U.S. payroll processing duopoly, Paychex helps businesses deal with the paperwork and logistics of paying their people. At present, the firm services more than 560,000 clients. Much of Paychex's more recent success has come from leveraging its current client base to sell other services that complement its core payroll processing business. Business lines like outsourced HR and 401(k) record management are examples of new ground for Paychex that's proved successful of late.

Less successful is one of the most low-risk revenue streams for the firm: interest on the float that Paychex carries between getting cash from clients and the withdrawals from those clients' employees. Low rates have trimmed that float revenue considerably -- but ultimately that float income is a small enough portion of the firm's earnings power that it doesn't diminish the value in this name.

This week, management announced a 3.23% increase in Paychex's dividend payout, bringing the company's total yield to 4.53%.

Paychex is a holding in Generation Investment Management's portfolio.
3 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GLW $18.70 -1.00%
FAST $46.75 -1.10%
PAYX $52.25 -1.10%
SNH $17.66 -0.17%
RPM $50.27 -0.81%


Chart of I:DJI
DOW 17,740.91 -89.85 -0.50%
S&P 500 2,062.19 -13.62 -0.66%
NASDAQ 4,774.2780 -31.0130 -0.65%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs