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

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
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).