Paychex (FRA:PCX) Dividend Payout Ratio: 0.90 (As of May. 2026) — 11% Above Median


FRA:PCX Paychex Inc FRA:PCX
81 GF Score
Price €84.39
GF Value €132.07
Valuation Significantly Undervalued
! 4 Warning Signs
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What is Paychex Dividend Payout Ratio?

Paychex FRA:PCX -0.02% 81 Dividend Payout Ratio is 0.90 as of May. 2026, which is 11% above its 10-year median of 0.81. GuruFocus rates FRA:PCX with a GF Score™ of 81/100 and a GF Value™ of €132.07 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 866 Software companies, Paychex ranks worse than 79.68% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Paychex's Dividend Payout Ratio for the months ended in May. 2026 was 0.90.

Warning Sign:

If a company's dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of Paychex Inc is 0.80, which seems too high.

The historical rank and industry rank for Paychex's Dividend Payout Ratio or its related term are showing as below:

FRA:PCX' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.74   Med: 0.81   Max: 0.83
Current: 0.8

During the past 13 years, the highest Dividend Payout Ratio of Paychex was 0.83. The lowest was 0.74. And the median was 0.81.

FRA:PCX's Dividend Payout Ratio is ranked worse than
79.68% of 866 companies
in the Software industry
Industry Median: 0.41 vs FRA:PCX: 0.80

As of today (2026-06-28), the Dividend Yield % of Paychex is 4.50%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Paychex was 5.05%. The lowest was 1.87%. And the median was 2.85%.

Paychex's Dividends per Share for the months ended in May. 2026 was €1.02.

During the past 12 months, Paychex's average Dividends Per Share Growth Rate was 10.20% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 10.80% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 12.30% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 10.00% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Paychex was 93.50% per year. The lowest was -19.40% per year. And the median was 13.20% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Paychex (FRA:PCX) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Paychex Dividend Payout Ratio Related Terms

Paychex Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Paychex's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Paychex Dividend Payout Ratio Chart

Paychex Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.74 0.76 0.77 0.81 0.80

Paychex Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.91 0.89 0.86 0.63 0.90

FRA:PCX vs WDAY, ROP, ZM: Dividend Payout Ratio Comparison

For the Software - Application subindustry, Paychex's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Paychex Dividend Payout Ratio vs Software Industry

For the Software industry and Technology sector, Paychex's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Paychex's Dividend Payout Ratio falls into.


FRA:PCX
81GF Score
Paychex Inc FRA:PCX
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Paychex Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Paychex's Dividend Payout Ratio for the fiscal year that ended in May. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (A: May. 2026 )/ EPS without NRI (A: May. 2026 )
=3.792/ 4.717
=0.80

Paychex's Dividend Payout Ratio for the quarter that ended in May. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: May. 2026 )/ EPS without NRI (Q: May. 2026 )
=1.019/ 1.13
=0.90

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.90 mean?
Paychex (FRA:PCX) has a Dividend Payout Ratio of 0.90 as of May. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Paychex and its competitors. This is 11% above median its historical median of 0.81. Over the past decade, Paychex's Dividend Payout Ratio has ranged from 0.74 to 0.83. According to the industry distribution chart, Paychex ranks #690 out of 866 companies in the Software industry, placing it in the top 79.7%.
Is Paychex's Dividend Payout Ratio too high?
Paychex's current Dividend Payout Ratio of 0.90 is 11% above median its 10-year median of 0.81. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 0.83. The Software industry median Dividend Payout Ratio is 0.41. Paychex's value of 0.90 is 119.5% above this industry median. Based on the distribution chart, Paychex ranks #690 out of 866 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Paychex has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's Dividend Payout Ratio compare to WDAY and ROP?
According to the Software industry distribution chart, Paychex ranks #690 out of 866 companies for Dividend Payout Ratio. This places Paychex in the lower half of its industry. The industry median Dividend Payout Ratio is 0.41. Paychex's value of 0.90 is 119.5% above this benchmark. Historically, Paychex's own Dividend Payout Ratio has ranged from 0.74 to 0.83 over the past decade. While the company's 10-year median is 0.81 vs. the industry median of 0.41, Paychex has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.41, based on 866 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current Dividend Payout Ratio of 0.90 is 119.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Paychex and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current Dividend Payout Ratio is 0.90, which is 11% above median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paychex stock overvalued right now?
Based on GuruFocus' analysis, Paychex (FRA:PCX) is currently considered Significantly Undervalued. The stock's GF Value™ is €132.07, compared to a current price of €84.39 — trading 36.1% below its estimated fair value. The current Dividend Payout Ratio is 0.90, which is 11% above median its 10-year median of 0.81 and 119.5% above the Software industry median of 0.41. Paychex's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Paychex (FRA:PCX), the current Dividend Payout Ratio is 0.90 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Paychex (FRA:PCX) Overvalued in 2026?

Based on GuruFocus' analysis, Paychex stock appears to be undervalued. The current stock price of €84.39 is trading 36.1% below its estimated GF Value™ of €132.07. GuruFocus considers Paychex to be Significantly Undervalued.

Key valuation signals for FRA:PCX:

  • Dividend Payout Ratio: 0.90 (11% above median its 10-year median of 0.81)
  • GF Value™: €132.07 vs. price of €84.39 (36.1% below fair value)
  • GF Score™: 81/100 with 4 warning signs
  • Industry Position: 119.5% above the Software median (#690 of 866)

No single metric tells the full story. See the FRA:PCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Paychex Business Description

Address 911 Panorama Trail South, Rochester, NY, USA, 14625-2396
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2025, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
81GF Score

Get the complete analysis for FRA:PCX

Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€84.39
Price
€132.07
GF Value