5 Companies that Just Increased Their Dividends

2. Paychex, Inc. (NASDAQ:PAYX)

Number of Hedge Fund Holders: 35

Dividend Yield as of May 5: 2.54%

Paychex, Inc. (NASDAQ:PAYX) is an American company that offers human capital management solutions for HR, payroll, benefits, and insurance services to small and medium-sized organizations in the United States and Europe. Paychex, Inc. (NASDAQ:PAYX)’s dividend yield on May 5 was 2.54%. 

Paychex, Inc. (NASDAQ:PAYX) on April 29 declared a $0.79 per share quarterly dividend, a 19.7% increase from the last dividend of $0.66. The dividend is payable on May 26, to shareholders of the company as of May 12. 

On April 6, Citi analyst Peter Christiansen raised the price target on Paychex, Inc. (NASDAQ:PAYX) to $145 from $140 and reiterated a Neutral rating on the shares. The company’s fiscal Q3 results and improved outlook “were impressive”, indicating that Paychex, Inc. (NASDAQ:PAYX) continues to take advantage of solid macro recovery momentum. The analyst also noted that the company benefited “from a number of idiosyncratic factors” like ongoing solid retention and robust new sales strength. However, he sees continued future upside to be more limited due to the stock’s valuation.

According to the database of Insider Monkey, 35 hedge funds held long positions in Paychex, Inc. (NASDAQ:PAYX) at the end of December 2021, with collective stakes worth $1.28 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a notable shareholder of the company, with more than 1 million shares worth $139.5 million.