Entering text into the input field will update the search result below

Paycom Software: Remains A Core Holding On Initiation Of A Dividend

May 21, 2023 11:36 AM ETPaycom Software, Inc. (PAYC)4 Comments
Jonathan Wheeler profile picture
Jonathan Wheeler


  • Paycom remains among a small group of highly profitable, high-growth cloud software companies.
  • The valuation today is reasonable, and more so today than my last buy rating.
  • With the initiation of a dividend, the company enters a new era of returning its massive cash flow potential directly to investors.



Paycom (NYSE:PAYC) operates in B2B SaaS software with many of the markers I look for in the highest quality businesses. I own shares and continue to add as the stock has dropped around 18% since the last time I covered

This article was written by

Jonathan Wheeler profile picture
My goal is to highlight the highest quality companies in the market, value or growth.  I buy with a long-term time horizon, and am typically looking for companies with strong competitive advantages, solid management, and a history of creating shareholder value.https://www.tipranks.com/bloggers/jonathan-wheeler

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PAYC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (4)

ChristianDe profile picture
This stock has been sitting on my watchlist for a long time, still quite expensive. Maybe I will buy small. Thnx for the excellent article.
Joseph Webster profile picture
Good article, thanks. Liking this stock a lot, even if the chart isn't the strongest
Dividend Streamer profile picture
@Jonathan Wheeler Thanks for a great article about Paycom. The dividend was a very pleasant surprise and I hope Paycom views their dividend in the same light as ADP, i.e. that it should be durable and consistently raised in line with cash flow.

Do you have any insight on what Chad is saying here about the $50? I'm not understanding his quote very well. The .5% yield is the only part of this that makes sense.

"Now, I mean, right now, it's -- we're looking at it as a fixed amount, the $50 over the next year, or $37.5 a quarter. I mean, right now, it's, that -- it's basically a 50% to about a 50% or 0.5% dividend yield based on our start current share price. So, but we would look at it as that $50 and then adjust that as we see fit in the future."
Jonathan Wheeler profile picture
@Dividend Streamer yeah, so he's talking about $0.375 per share quarterly, and I think it cut out on the transcript but should be $1.50 per share annual that he's referring to. The $50 can't line up with anything else, since the annual dividend will be more than $50M. Thanks for reading!

Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About PAYC

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PAYC

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.