Paychex, Inc. (NASDAQ:PAYX)

This stock is included in the Morningstar "Dividend Portfolio," which I use as my core stock group. I highly suggest anyone interested in dividend income take a look at this grouping of quality income producing stocks.

Outsourcing payroll is a great idea. I use this company and get great customer service and correct tax forms and paychecks for my employees without the headaches for a cup of Starbucks a day.

PAYX focus on small-business owners provide excellent profit margins. This niche focus has created a strong specialization and expertise, combined with low scale costs. It's biggest competitor ADP is more diversified across Small / Medium / and Large businesses, but consequently produces smaller margins. Excellent opportunities for PAYX to grow, and cross-sell to current small-business customers. Beware if PAYX strays from its focus on small businesses!

$43

valuation

Fantastic business model and currently as cheap as a rational person could hope for. Thank you sir, may I have another?

Well established co with plenty of business to add on

Beat down stock to make a turnaround

Wide economic moats that will only get wider over time. Buy and hold forever.

Great business. Attractive price. Trustworthy/capable managers.

well run company; undervalued

A low risk business with large expansion opportunities, both in payroll with small businesses penetration, and in new services with HR, Medical, and 401(k) administration. Extremely well run, no debt, outrageously profitable, with a nice yield to boot. What's not to like?

Consistently high ROI and a decent, strongly growing dividend, and no debt. Also just announced a share buyback that should reduce shares outstanding by 6-8%. They actually earn interest on clients' withheld payroll taxes! And there's still a lot of room to grow through acquisition of new clients and smaller payroll service providors. This is a business that would be hard for management to mess up. Just buy and hold forever & you'll do well.

This CAPS account is tracking the 200 highest yielding S&P stocks.

Increasing pre-tax profit margin, current price is fair (better than 4 to 1 upside/downside potential) based on sales and earnings growth history/projection.

Workers gotta get paid and they are a great company. Also, they will be making more interest income (on the money they hold from the time they collect it to the time they hand it over to the goverment), since interest rates are up.

good profits with high margins. If unemployment risees they could hit a wall, but those are usually times to back up the truck.

Fed Interest rate cuts and rising unemployment equals a further deceleration in PAYXs fundamentals.

whats with all the talk about shorting? you buy stocks because of the value they provide(when you buy on sale that is) so, you won't lose as long as the stock(or the company is doing everything right to provide more value).i see lots of value in this stock. every thing seems to be right according to the stats, so why short it? buy and hold .