I just returned from a visit to Grace Patriot Winery where
the owner took us on a tour and reviewed the complexities of running a
winery. Their wine is delicious but
their regulations are monumental. Much
of the challenge is on the employee, human resources side.
Employer Challenges
All of us who have had employees know that the complexities
of just making payroll are significant.
It is not enough to just make more money than you spend, every employer,
big or small must secure professional help to make sure they do not run afoul
of employer rules when they pay their employees.
Paychex, symbol PAYX is a stock that meets all Dividend
Machine criteria as you will see below.
This is how they describe their business:
We are a leading provider of payroll, human resource, and
benefits outsourcing solutions for small- to medium-sized businesses. As of May
31, 2012, we serviced approximately 567,000 clients, including approximately
2,000 clients through four offices in Germany. We maintain our corporate
headquarters in Rochester, New York, and have more than 100 offices nationwide
PAYX Dividend Machine Fundamentals
Paychex closed on Friday July 10,
2015 at $47.48. I will use the closing
price on Monday July 13, 2015 as the basis when I add PAYX to the 2015 Dividend
Machine model portfolio.
Paychex has consistently earned
more money per share than it pays out in dividends. As earnings grow so have dividends. Most recently, PAYX increased the quarterly
dividend from $.38 to $.42. This
increase is just about 10%. Over the
past five years, PAYX’s average annual increase is 7.096%. Using the closing price last Friday, PAYX’s
current annualized dividend is $.42 time four or $1.68, for yield of 3.538%.
This is a stock with a solid
balance sheet. They have no debt and
have not had any for quite a while.
See the table below to review
PAYX’s Dividend Machine fundamentals.
I think being an employer is not
getting any easier and this company is well positioned to help small and midsized
employers. Consider PAYX for the
income producing portion of your portfolio.
TheMoneyMadam
Anticipate adding PAYX
soon but no position as of this posting
http://www.nasdaq.com/article/paychex-bumps-up-dividend-by-double-digits-cm494934
