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Paychex 8-K Report, Corporate Update (Jan 19, 2024)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed January 19, 2024
Period End
January 19, 2024
Security
PAYX
In the record · 2016–202610-K1110-Q328-K99

PAYX filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 99 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’20Feb ’20
  2. Leadership change8-K · Oct ’22Oct ’22
  3. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed January 19, 2024. Cited figures are marked; the original filing is the authoritative source.

Paychex, Inc. (Nasdaq: PAYX) filed this Form 8-K on January 19, 2024, to report two shareholder-return actions under Item 8.01 (Other Events).

The Board approved a new program to repurchase up to $400 milliona of Paychex common stock, with authorization expiring May 31, 2027. The repurchase program is in addition to an existing program whose authorization expires January 31, 2024. The purchases are authorized to begin February 1, 2024.

The company also announced a quarterly dividend of $0.89b per share, payable February 27, 2024, to shareholders of record as of February 13, 2024. The press release furnished as Exhibit 99.1 states that in fiscal 2023, ended May 31, 2023, Paychex returned $1.2 billion in dividends, equal to 75% of net income, to shareholders. CEO John Gibson framed the actions as continuing the company's history of shareholder value creation while investing in long-term growth.

02—Key points

Key Highlights

  1. Board authorized a new stock repurchase program of up to $400 million of Paychex common stock, effective beginning February 1, 2024, expiring May 31, 2027.
  2. The new repurchase program is in addition to an existing program whose authorization expires January 31, 2024.
  3. Quarterly dividend of $0.89 per share declared, payable February 27, 2024, to shareholders of record as of February 13, 2024.
  4. In fiscal 2023 (ended May 31, 2023), Paychex returned $1.2 billion in dividends, or 75% of net income, to shareholders.
  5. The company serves approximately 740,000 customers in the U.S. and Europe, and states it pays one out of every 12 American private sector employees.
  6. The filing's press release is furnished as Exhibit 99.1; the 8-K also includes the cover page in Inline XBRL (Exhibit 104).

03—Questions

Frequently Asked Questions

  1. How much is Paychex authorized to spend on share repurchases under this new program?

    The Board authorized the purchase of up to $400 million of Paychex common stock, beginning February 1, 2024, with the authorization expiring May 31, 2027.

  2. What is the size of the quarterly dividend and when is it paid?

    The quarterly dividend is $0.89 per share, payable February 27, 2024, to shareholders of record as of February 13, 2024.

  3. How does the new repurchase program relate to the existing one?

    The $400 million program is in addition to the existing program, whose authorization expires January 31, 2024.

  4. How much did Paychex return to shareholders in its most recent fiscal year?

    In fiscal 2023, ended May 31, 2023, Paychex returned $1.2 billion in dividends, equal to 75% of net income, to shareholders, according to the press release furnished as Exhibit 99.1.

04—Continue

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