What Paychex's Earnings Mean for Mutual Fund Investors (PAYX)

Welcome to MutualFunds.com

Please help us personalize your experience and select the one that best describes you.

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission

We hope you enjoy your experience


Find the latest content and information here about the 2019 Charles Schwab Impact Conference.


Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

Paychex logo in blue


What Paychex's Earnings Mean for Mutual Fund Investors (PAYX)

Shauna O'Brien Dec 19, 2014

Paychex (PAYX) released its second quarter financial results before the opening bell on Friday. Here’s what the results mean for mutual fund investors.

Inside the Results


Earnings came in at $173 million, or 47 cents per share, up from $157.8 million, or 43 cents per share, last year. Analysts expected to see 47 cents per share in earnings.

Revenue rose to $676.3 million from $616.4 million a year ago. Analysts expected to see revenue of $672.61 million.

Attractive Dividend Yield, but Payout Ratio Is High

The stock’s valuation is currently very expensive at 25x 2015 EPS estimates, so some fund managers may not want to add to their positions at the stock’s current level. Although the stock is expensive, it does offer an attractive dividend yield, which is about 3%. While this may be a good pick for income-focused investors, the stock’s payout ratio of 82% may mean that the company has little room for dividend growth.

Mutual Funds to Watch

The mutual funds below may be a good option for investors seeking exposure to PAYX. The three funds listed currently hold the largest stakes in the company.

The Bottom Line

The funds listed above allow investors to gain exposure to a wide range of holdings. Investors interested in Paychex may also be interested in Trinet (TNET).

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download Our Free Report

Why 30 trillion is invested in mutual funds book