A stock repurchase authorization is board approval for a company to buy back its own shares up to a stated amount or time period, using its cash or borrowed funds. For investors it matters because reducing the number of shares outstanding can increase each remaining share’s claim on profits and often signals management’s confidence, but it also uses cash that could have been spent on other priorities — like shrinking a pie so each slice is bigger.
quarterly cash dividendfinancial
A quarterly cash dividend is a payment made by a company to its shareholders four times a year, usually based on its profits. It is like a regular bonus or reward for owning the company's stock, providing shareholders with income. Many investors see these payments as a sign of the company's stability and its ability to generate consistent profits.
common stockfinancial
Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.
human capital managementtechnical
Human capital management is a company’s system for recruiting, training, organizing, paying and retaining its workforce—like running a sports team or orchestra to ensure the right people with the right skills are in the right roles. Investors care because how well a firm manages its people affects productivity, costs, staff turnover and the company’s ability to execute strategy, which in turn influences future profits, cash flow and valuation.
ROCHESTER, N.Y.--(BUSINESS WIRE)--
Paychex, Inc. (Nasdaq: PAYX), an industry-leading human capital management ("HCM") company, today announced that its Board of Directors has authorized the purchase of up to $1 billion of the Company’s common stock. The new authorization replaces the prior 2024 authorization to repurchase $400 million of the Company’s common stock.
In addition, the Board has declared a regular quarterly cash dividend on Paychex common stock of $1.08 per share, payable on February 27, 2026, to shareholders of record as of January 28, 2026.
"For many years, we have maintained a long-standing commitment to delivering outstanding value to our investors,” said John Gibson, Paychex President and CEO. “Today’s new share repurchase authorization, together with our dividend declaration, demonstrates our confidence in the strength of the business, consistent cash flow generation, and disciplined approach to long-term value creation.”
In fiscal 2025, Paychex returned over $1.5 billion to shareholders through cash dividends and share repurchases.
About Paychex
Paychex, Inc. (Nasdaq: PAYX) is the digitally driven HR leader that is reimagining how companies address the needs of today’s workforce with the most comprehensive, flexible, and innovative HCM solutions for organizations of all sizes. Offering a full spectrum of HR advisory and employee solutions, Paychex pays 1 out of every 11 American private sector workers and is raising the bar in HCM for approximately 800,000 customers in the U.S. and Europe. Every member of the Paychex team is committed to fulfilling the company’s purpose of helping businesses succeed. Visit paychex.com to learn more. Visit paychex.com to learn more.
