Getting paid from Paychex

 

Another day, another dividend … this time from Paychex.

My Dividend Farm has been doing exactly what I designed it to do this month … produce dividends. I earned another one Thursday, my fourth of the week and 36th of August. The payment brought my August dividend total to $30.27 and my 2017 mark to $190.45.

Anyway, here’s more on the dividend

Paychex

I’m the proud owner of three shares of Paychex. Each one earned me $.50 for a combined payout of $1.50 Thursday.

I’ve been paid three of the four days so far this week, once on Monday and twice on Wednesday, but Thursday’s was by far the biggest. I have a ton of small positions, mostly single-share positions, but PAYX is one I’ve actually added to. I bought my first share for $61.17 back on January 11 and added two more at an average cost of $58.04 in April. The company is currently trading at $55.54, so I may pick up a few more shares at en even bigger discount.

I’m always looking to lower my cost basis and, well, Paychex just keeps getting cheaper. The dividend seems pretty sustainable, although growth might be an issue with a payout ratio of 88%. The yield is already 3.59%, though, which is better than most of the companies in my portfolio. Paychex hasn’t gotten much love lately, but its cash flow looks good with a profit margin of 24.46% and no debt to speak of.

I’m not saying run out and buy some shares. I’m saying it might be worth a look if you want a decent yield and a chance for some capital gains. Paychex, unlike its competitor ADP, handles payroll services for smaller companies. As those companies grow, Paychex, as long as it keeps them as clients, should grow right along with them, right?

Hopefully there’s nowhere to go but up from here, but we’ll see. I thought that when I bought that first share for $60-plus.

That’s all I have for now, folks. Thanks for reading.

March on!