Paychex Increases Dividend 3.3%

On Monday, Paychex (PAYX) announced a 3.3% increase in the company's quarterly cash dividend. The new quarterly dividend increases to 31 cents per share versus 30 cents per share in the same quarter last year. The estimated payout ratio is 75% based on year end May 2009 earnings per share estimate of $1.65. The 5-year average payout ratio is approximately 53%. Paychex has an S&P Quality Ranking of A+.