Paychex, Inc.
PAYXPaychex, Inc. (PAYX) is a Technology company that currently yields 3.47% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $103.16 and the overvaluation threshold at $164.93. Paychex, Inc. holds a quality score of 45/100 (Average), reflecting 12 consecutive years of dividend growth with a 91% payout ratio. The 5-year dividend CAGR stands at 11.2%.
PAYX Dividend Yield History — Weiss Valuation
Distance to undervalued
Waiting for a better entry
Needs about 17.1% downside to reach the Weiss buy zone
Undervaluation starts near $103.16, where the annual dividend would imply roughly 4.19% yield. That is 0.72% above today's yield.
Buy-zone price
$103.16
Target yield
4.19%
Research checklist
What to clear before buying the yield
Updated Aug 23, 2026
Dividend durability
12YLong dividend history supports a deeper look.
Earnings payout
91%Coverage deserves a closer look in filings.
Cash payout
N/AConfirm cash conversion and one-off effects.
Dividend growth
11.2%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-08-22 → 2026-08-23
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Paychex, Inc. is trading at a fair valuation relative to its dividend history.
Current yield 3.5% vs historical max 6.3% (55% of maximum).
12 consecutive years without a dividend cut.
Elevated payout ratio of 91%.
What matters now
Read the signal before the headline yield
Valuation is neutral here: quality has to do more of the work than entry price.
The 45/100 quality score says the headline yield needs extra skepticism.
Start by checking whether payout coverage and business durability still support the dividend.
PAYX Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$386
Year 10 Income
$1,711
Yield on Cost
18.83%
Total Income
$8,768
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗PAYX Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
→ PAYX Dividend Analysis Article