Paychex, Inc. (NASDAQ:PAYX) raised its dividend by 43%, from $.21 per share to $.30 per share, and announced a stock repurchase of up to $1.0 billion.
The company commented “We don’t believe there’s any better investment than ourselves.”
Paychex, Inc. is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses.
PAYOUT YIELD ANALYSIS
With 382 million shares, the $1 billion share repurchase will return $2.62 per share. Combined with the higher annualized dividend of $1.20, the Total Payout is projected to be $3.82 per share. At a $43 share price, the Total Payout Yield is projected to be 8.9% if the repurchase is completed in the next 4 quarters.