Paycom Software (NYSE:PAYC) Has Announced A Dividend Of $0.375

Simply Wall St

Sat, February 14, 2026 at 9:36 PM GMT+9 2 min read

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The board of Paycom Software, Inc. (NYSE:PAYC) has announced that it will pay a dividend on the 23rd of March, with investors receiving $0.375 per share. Including this payment, the dividend yield on the stock will be 1.2%, which is a modest boost for shareholders’ returns.

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Paycom Software’s Projected Earnings Seem Likely To Cover Future Distributions

Even a low dividend yield can be attractive if it is sustained for years on end. Before making this announcement, Paycom Software was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 24.7%. If the dividend continues along recent trends, we estimate the payout ratio will be 15%, which is in the range that makes us comfortable with the sustainability of the dividend.

NYSE:PAYC Historic Dividend February 14th 2026

See our latest analysis for Paycom Software

Paycom Software Is Still Building Its Track Record

The dividend hasn’t seen any major cuts in the past, but the company has only been paying a dividend for 3 years, which isn’t that long in the grand scheme of things. The most recent annual payment of $1.50 is about the same as the annual payment 3 years ago. Paycom Software hasn’t been paying a dividend for very long, so we wouldn’t get to excited about its record of growth just yet.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. It’s encouraging to see that Paycom Software has been growing its earnings per share at 27% a year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

We Really Like Paycom Software’s Dividend

Overall, we like to see the dividend staying consistent, and we think Paycom Software might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we’ve picked out 1 warning sign for Paycom Software that investors should take into consideration. Is Paycom Software not quite the opportunity you were looking for? Why not check out our **selection of top dividend stocks. **

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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