2024-02-12 07:15:00 ET
Summary
- Besides a brief dividend freeze during the COVID-19 pandemic, Paychex has been an excellent dividend grower over the years.
- The company’s revenue fell just short of the analyst consensus in fiscal Q2 while adjusted diluted EPS topped expectations.
- Paychex’s effective credit rating would be a BBB+ per Dividend Kings.
- The human capital management company could be 2% undervalued.
- Paychex has a realistic path to low- double-digit annual total returns over the next 10 years.
By now, it’s probably well known that my preferred investing style is dividend growth, often with a bit of value as well. I can’t speak for everybody, but I appreciate that dividend growth investing provides me with a steadily growing stream of passive income. Eventually, the goal is for my passive income to exceed my expenses, allowing me to achieve financial independence....
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Paychex: A Dividend Grower Priced At A Discount