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Paychex shares seen as undervalued with strong growth and 4.6% dividend yield post-Paycor deal

Analyst Insights
13 Apr 2026
Seeking Alpha
View Source
Bullish
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Paychex (PAYX) is reaffirmed as a 'Buy' due to accelerating organic growth and effective integration of Paycor, with Q3 2026 revenue up 19.9% year-over-year. The company benefits from Paycor synergies and cross-selling, pushing organic growth to 6%. Shares currently trade at a 36% discount to fair value with a forward P/E of 15.9 compared to a fair value multiple of 25. Paychex offers a secure 4.6% forward dividend yield, supported by a strong balance sheet and sustainable payout, positioning it well for continued dividend growth.

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