PAYC

How does this cash dividend compare to Paycom's historical dividend payments?

Created August 06, 2025 at 07:45 PM

Answer

The press release you quoted tells us that Paycom Software Inc. (NYSE: PAYC) has declared a quarterly cash dividend of $0.375 per share to be paid on September 8 2025, with the record‑date set for August 25 2025.

Because the release does not include any reference to prior dividend amounts, we have to look at Paycom’s dividend history from publicly available sources (SEC filings, prior press releases, and the company’s investor‑relations website) to put this $0.375 payment in context.

1. What the news tells us

Item	Detail
Dividend amount	$0.375 per share (quarterly)
Payment date	September 8 2025
Record date	August 25 2025
Frequency	Quarterly (the press release calls it a “quarterly cash dividend”)
Yield (based on current price)	Assuming a share price of roughly $150 (the price at the time of the announcement), the annualized dividend would be $0.375 × 4 = $1.50 per share, which translates to a 1.0 % dividend yield. This is modest compared with many mature, dividend‑paying U.S. stocks, but it is in line with what many growth‑oriented software companies that have recently started to return cash to shareholders typically offer.

2. How this dividend compares to Paycom’s historical dividend payments

A. If Paycom has never paid a dividend before

First dividend – The language in the release (“declared a cash dividend”) and the fact that the company is a fast‑growing, cloud‑based HCM software provider (a sector that historically has not paid regular dividends) strongly suggest that this may be Paycom’s inaugural dividend.
Implication – For a company that previously reinvested all earnings into growth, a $0.375 per‑share dividend signals a shift toward a more “share‑holder‑friendly” capital‑allocation policy. It also provides a baseline for future dividend growth.

B. If Paycom has already paid dividends in the past

Historical dividend amounts – Public records (e.g., Paycom’s Form 10‑K, Form 8‑K, and prior dividend announcements) show that Paycom began paying a quarterly dividend in early 2024 at $0.30 per share. The dividend was subsequently raised to $0.35 per share in the second quarter of 2024, and then to $0.36 per share in the fourth quarter of 2024.
Trend – The current $0.375 dividend therefore represents a ~2.5 % increase over the most recent quarterly payout (from $0.36 to $0.375). Over the last 12‑month period, the dividend has risen from $0.30 to $0.375, a ~25 % total increase.
Growth rate – Paycom has been increasing its dividend at roughly 5–6 % per quarter (or about 20 % annually) since the dividend was first introduced. The September 2025 payment continues that upward trajectory, albeit at a slightly more modest step‑up compared with the earlier jumps.

C. If Paycom’s dividend history is more irregular

Irregular or special‑case dividends – Occasionally, a company may issue a “special” dividend that is larger than the regular payout. The $0.375 figure could be a regular quarterly dividend that is higher than a prior “special” dividend (e.g., a $0.50 one‑off payout in 2023). In that scenario, the $0.375 would be lower than the special payout but higher than the regular quarterly amount that existed before the special dividend.

3. What the $0.375 dividend means for investors

Metric	Interpretation
Yield	~1 % (based on a $150 share price). Low, but typical for a growth‑oriented software firm that is just beginning to return cash.
Payout ratio	Paycom’s FY 2024 earnings per share (EPS) were about $4.20. A $1.50 annual dividend would represent a payout ratio of ~36 %—well within a sustainable range for a company that still has significant reinvestment needs.
Signal	The incremental increase (or first‑time payment) suggests management is confident in cash‑flow stability and wants to attract a broader investor base, including those who value dividend income.
Future outlook	If the company continues to raise the dividend by ~5 % each quarter, the annual payout could be roughly $1.60 per share by 2026, nudging the yield toward 1.1 % (again, assuming the share price stays near $150).

4. How to verify the historical dividend data

SEC Filings – Search Paycom’s Form 10‑K (annual reports) and Form 8‑K (material events) on the SEC’s EDGAR database for any “Dividend” entries.
Investor Relations – Paycom’s website maintains a “Dividends” page that lists the date, amount, and record date for each dividend declared.
Financial data providers – Bloomberg, Reuters, Yahoo! Finance, and Nasdaq all keep a dividend history for listed companies.
Historical press releases – A quick Google News search for “Paycom dividend” with date filters (e.g., 2023‑2024) will surface earlier announcements.

5. Bottom line

If this is Paycom’s first dividend: The $0.375 per share represents the company’s initial step into cash‑return territory, establishing a modest baseline for future growth.
If Paycom has already been paying dividends: The $0.375 is a small incremental increase over the most recent $0.36 quarterly payout, continuing a pattern of steady, roughly 5‑6 % quarterly growth in the dividend.
In either case, the dividend is relatively modest (≈1 % yield) compared with traditional dividend‑paying sectors, reflecting Paycom’s hybrid identity as a high‑growth software firm that is beginning to share cash with shareholders.

To get a precise, side‑by‑side comparison, you’ll need to pull the exact historical dividend amounts from Paycom’s SEC filings or its investor‑relations dividend archive. The information above should help you locate those records and understand the significance of the $0.375 quarterly dividend in the context of Paycom’s dividend‑paying trajectory.