High Yield, Moderate Growth: Can You Bank on Paychex?
Paychex (NASDAQ:PAYX) caught my eye today, as it recently reported its earnings and the stock is moderately selling off. This company is a high-yielding, moderate-growth company that I think can fill a unique niche in the financial section of your portfolio. For those who do not know this company, it provides provides payroll, human resource, insurance, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany.
The company offers payroll processing services that include the calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of client’s payroll obligations. It also provides a suite of self-service online payroll services and products, including Paychex Online Payroll, Internet time sheets, online reports, and general ledger reporting service. It offers payroll tax administration services, employee payment services, and regulatory compliance services, such as new-hire reporting and garnishment processing.
Further, it provides retirement services administration; insurance agency services for property and casualty; business owner, commercial auto, and health and benefits insurance products; as well as online human resource administration software tools for managing employee benefits, personnel information, and human resource compliance and reporting.