Paychex Declares a 10% Increase to Quarterly Cash Dividend

Rhea-AI Summary

Paychex, Inc., a leading provider of human capital management software solutions, announced a 10% increase in its quarterly cash dividend to $0.98 per share. The Board of Directors approved the increase based on strong financial position and healthy free cash flow. The dividend will be payable on May 30, 2024, to shareholders of record as of May 10, 2024.

Positive

• Paychex demonstrates a strong financial position by increasing the quarterly dividend by 10%.

• The company's healthy free cash flow generation supports the decision to enhance shareholder value.

• Continuing a tradition since 1988, Paychex plans to return approximately $1.3 billion in dividends to shareholders for the fiscal year ending on May 31, 2024.

Negative

• None.

ROCHESTER, N.Y.--(BUSINESS WIRE)-- Paychex, Inc. (Nasdaq: PAYX), a leading provider of integrated human capital management software solutions for human resources, employee benefits, insurance services, and payroll, today announced that its Board of Directors approved a quarterly dividend of $0.98 per share, an increase of $0.09 (or 10%) from the prior quarterly dividend of $0.89 per share, payable on May 30, 2024 to shareholders of record as of May 10, 2024.

“We are increasing our dividend based on the strong financial position of the company and the healthy free cash flow generation of the business,” said John Gibson, Paychex president and CEO. “While we continue to prioritize investing in the long-term growth of the company, we remain committed to returning excess capital to our shareholders.”

For the fiscal year ending on May 31, 2024, Paychex expects to return approximately $1.3 billion in dividends to shareholders, continuing a tradition of paying consecutive quarterly cash dividends every year since 1988.

About Paychex

Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. The company serves approximately 740,000 customers in the U.S. and Europe and pays one out of every 12 American private sector employees. The more than 16,000 people at Paychex are committed to helping businesses succeed and building thriving communities where they work and live. Visit paychex.com to learn more.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501743390/en/

Investor Relations Contacts

Jason Harbes, CFA

Paychex, Inc.

Director, Investor Relations

585-336-7502

investors@paychex.com



Phil Nicosia, CFA

Paychex, Inc.

Manager, Investor Relations

585-626-3174

investors@paychex.com

Media Contact

Tracy Volkmann

Paychex, Inc.

Manager, Public Relations

585-387-6705

tvolkmann@paychex.com

Source: Paychex, Inc.

FAQ

What is the new quarterly cash dividend declared by Paychex (PAYX)?

Paychex declared a new quarterly cash dividend of $0.98 per share, marking a 10% increase from the previous dividend.

When will the increased dividend be payable to Paychex shareholders (PAYX)?

The increased dividend of $0.98 per share will be payable on May 30, 2024, to shareholders of record as of May 10, 2024.

How much does Paychex (PAYX) expect to return in dividends for the fiscal year ending on May 31, 2024?

Paychex plans to return approximately $1.3 billion in dividends to shareholders for the fiscal year ending on May 31, 2024.