Paychex, Inc.

PAYX
Technology
$124.47
3.47%Fair Value

Paychex, 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

Underval. $103.16Overval. $164.93

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

12Y

Long dividend history supports a deeper look.

Earnings payout

91%

Coverage deserves a closer look in filings.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

11.2%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-08-222026-08-23

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.

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

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PAYX Dividend Quality Score

Quality Score

45/ 100

Average

Payout Ratio0/25
Dividend Streak20/25
Growth (CAGR 5Y)20/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$124.47
Annual Dividend$4.32
Current Yield3.47%
Yield — Max (10Y)6.28%
Yield — Min (10Y)2.76%
Undervalued Below$103.16
Overvalued Above$164.93
Payout Ratio90.59%
CAGR Dividend 5Y11.2%
CAGR Dividend 10Y10.2%
Years No Cut12y

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12
consecutive years of dividend growth