
Will Paychex (PAYX) Stock Be Helped by Dividend Hike, Share Repurchase Program?
NEW YORK (TheStreet) -- Paychex (PAYX) - Get Report announced this morning that it will increase its quarterly dividend by 10% and repurchase stock.
The payroll software company hiked its dividend to 46 cents per share from 42 cents per share. The dividend is payable on August 25 to shareholders of record as of August 1.
Paychex also announced that its board authorized a stock buyback program of up to $350 million.
"The dividend increase and stock repurchase authorization supports the company's history of providing exceptional shareholder value while continuing to make strategic investments in the long-term growth of Paychex," CEO Martin Mucci said in a statement.
The stock is flat in mid-morning trading on Thursday after closing at $60.84 on Wednesday.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A.
Paychex's strengths such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: PAYX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.










