5 High-Yield Stocks Ready to Boost Dividends Again

Paychex

Payroll and HR outsourcing firm Paychex (PAYX) services more than 500,000 small and medium business clients worldwide. That's at least part of the reason why this stock has had such a low profile in recent years -- it's still seen as having too much exposure to the convalescing jobs market. Someone should tell that to Paychex, though; the firm has seen stair-step revenue and profit growth in the last few years.

Paychex has traditionally been a payroll company, providing services for small and medium-sized businesses that wanted to simplify the process of getting employees paid and taxes sorted. But PAYX has unlocked a profitable niche in the HR outsourcing business, upselling everything from 401(k) record-keeping to workers' compensation administration to its existing customer Rolodex.

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While margins from the firm's float income (the interest income it earns by holding clients' cash until employees withdraw it) have slipped by a few points thanks to low interest rates, Paycheck is still on solid footing from a financial standpoint. The firm currently pays out a 32 cent dividend each quarter that adds to a 3.91% yield. I think that Paychex looks likely to hike that payout next quarter after four straight 32-cent payouts in a row.

Paychex also shows up on recent lists of Tech Stocks That Pay Big Dividends and Dividend Stocks to Consider in Lieu of Bonds.

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