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Paychex boosts dividend by 11%, stock gains ground

Tomi Kilgore

Paychex Inc. said Friday it will raise its quarterly dividend by 11% to 62 cents a share, from 56 cents a share. The stock edged up 0.5% in premarket trade. The human resources services company said the new dividend will be payable May 30 to shareholders of record on May 15. Based on Thursday's stock closing price of $82.78, the new annual dividend rate implies a dividend yield of 3.00%, compared with the implied yield for the S&P 500 of 1.96%, according to FactSet. Paychex's stock has rallied 34.2% over the past 12 months through Thursday, while the S&P 500 has gained 10.9%.