Published on 4 May 2024 on Simply Wall St. via Yahoo Finance

Paychex, Inc. (NASDAQ:PAYX) Stock Goes Ex-Dividend In Just Four Days

Paychex, Inc. (NASDAQ:PAYX) stock is about to trade ex-dividend in 4 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Paychex investors that purchase the stock on or after the 9th of May will not receive the dividend, which will be paid on the 30th of May.

The company's next dividend payment will be US$0.98 per share. Last year, in total, the company distributed US$3.56 to shareholders. Based on the last year's worth of payments, Paychex stock has a trailing yield of around 3.0% on the current share price of US$120.10. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Paychex can afford its dividend, and if the dividend could grow.