Paychex (PAYX) and ADP each raised dividends about 10%, but PAYX yields 4.3% at 18x forward earnings versus ADP's 2.4% at 22x. ADP paid out 60% of net income, and its $5.24 billion in free cash flow covered the dividend 2.0 times, while Paychex paid out 90% with 1.46x coverage. ADP earns $1.54 billion in float income compared with $200 million at Paychex, making it more exposed to falling interest rates. The article describes Paychex as an income play for retirees who need cash flow now, and ADP as the core holding for longer horizons, citing its dividend record since 1999 and projected fiscal 2027 adjusted EPS growth of 9%–11% versus 7%–9% at Paychex.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: ADP vs . PAYX : Which Payroll Stock Will Reward Retirees More Over the Next Decade ?
Read the original on aol.com ↗
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