Paycom SoftwareHAM:0PY +2.57%71 Dividend Payout Ratio is 0.12 as of Mar. 2026, which is 25% below its 10-year median of 0.16. GuruFocus rates HAM:0PY with a GF Score™ of 71/100 and a GF Value™ of €217.18 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 868 Software companies, Paycom Software ranks better than 86.87% 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. Paycom Software's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.12.
The historical rank and industry rank for Paycom Software's Dividend Payout Ratio or its related term are showing as below:
HAM:0PY'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.16 Max: 0.18
Current: 0.04
During the past 13 years, the highest Dividend Payout Ratio of Paycom Software was 0.18. The lowest was 0.04. And the median was 0.16.
HAM:0PY's Dividend Payout Ratio is ranked better than 86.87% of 868
companies
in the Software industry
Industry Median: 0.405
vs HAM:0PY: 0.04
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.
Paycom Software (HAM:0PY) 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.
Paycom Software Dividend Payout Ratio Related Terms
Paycom Software Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Paycom Software'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.
HAM:0PY vs ESTC, CVLT, NAVN: Dividend Payout Ratio Comparison
For the Software - Application subindustry, Paycom Software'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.
Paycom Software Dividend Payout Ratio vs Software Industry
For the Software industry and Technology sector, Paycom Software's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Paycom Software's Dividend Payout Ratio falls into.
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.
Paycom Software's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Paycom Software (HAM:0PY) has a Dividend Payout Ratio of 0.12 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Paycom Software and its competitors. This is 25% below median its historical median of 0.16. Over the past decade, Paycom Software's Dividend Payout Ratio has ranged from 0.04 to 0.18. According to the industry distribution chart, Paycom Software ranks #114 out of 868 companies in the Software industry, placing it in the top 13.1%.
Is Paycom Software's Dividend Payout Ratio too high?
Paycom Software's current Dividend Payout Ratio of 0.12 is 25% below median its 10-year median of 0.16. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 0.18. The Software industry median Dividend Payout Ratio is 0.41. Paycom Software's value of 0.12 is 70.4% below this industry median. Based on the distribution chart, Paycom Software ranks #114 out of 868 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paycom Software has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's Dividend Payout Ratio compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #114 out of 868 companies for Dividend Payout Ratio. This places Paycom Software in the top 13% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.41. Paycom Software's value of 0.12 is 70.4% below this benchmark. Historically, Paycom Software's own Dividend Payout Ratio has ranged from 0.04 to 0.18 over the past decade. While the company's 10-year median is 0.16 vs. the industry median of 0.41, Paycom Software has consistently been below 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 868 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. Paycom Software's current Dividend Payout Ratio of 0.12 is 70.4% below 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 Paycom Software 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. Paycom Software's current Dividend Payout Ratio is 0.12, which is 25% below median its own 10-year median of 0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paycom Software stock overvalued right now?
Based on GuruFocus' analysis, Paycom Software (HAM:0PY) is currently considered Significantly Undervalued. The stock's GF Value™ is €217.18, compared to a current price of €125.65 — trading 42.1% below its estimated fair value. The current Dividend Payout Ratio is 0.12, which is 25% below median its 10-year median of 0.16 and 70.4% below the Software industry median of 0.41. Paycom Software's overall GF Score™ is 71/100 with 3 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 Paycom Software (HAM:0PY), the current Dividend Payout Ratio is 0.12 as of Mar. 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 Paycom Software (HAM:0PY) Overvalued in 2026?
Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued.
The current stock price of €125.65 is trading 42.1% below its estimated GF Value™ of €217.18.
GuruFocus considers Paycom Software to be Significantly Undervalued.
Key valuation signals for HAM:0PY:
Dividend Payout Ratio: 0.12 (25% below median its 10-year median of 0.16)
GF Value™: €217.18 vs. price of €125.65 (42.1% below fair value)
Industry Position: 70.4% below the Software median (#114 of 868)
No single metric tells the full story. See the HAM:0PY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company services businesses of all sizes within the United States and internationally. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.
71GF Score
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