Paychex, Inc.
PAYXPaychex, Inc. (PAYX) is a Technology company that currently yields 4.45% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $103.38 and the overvaluation threshold at $164.93. Paychex, Inc. holds a quality score of 50/100 (Average), reflecting 12 consecutive years of dividend growth with a 95% payout ratio. The 5-year dividend CAGR stands at 11.2%.
PAYX Dividend Yield History — Weiss Valuation
Distance to undervalued
In undervalued territory
Price sits 6.2% below the Weiss buy zone ceiling
The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.
Zone ceiling
$103.38
Current yield
4.45%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
12YLong dividend history supports a deeper look.
Earnings payout
95%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
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Paychex, Inc. is trading near its historical undervaluation band.
Current yield 4.5% vs historical max 6.3% (71% of maximum).
12 consecutive years without a dividend cut.
Elevated payout ratio of 95%.
What matters now
Read the signal before the headline yield
Valuation is the invitation here: the yield is elevated versus its own history.
The 50/100 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
$495
Year 10 Income
$2,539
Yield on Cost
28.66%
Total Income
$12,263
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗PAYX Dividend Quality Score
Quality Score
Average
Key Metrics
PAYX is historically undervalued. Ready to add it to your portfolio?
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In-depth analysis
→ PAYX Dividend Analysis Article