Key Highlights

  • Paycom's $0.375 quarterly Dividend has an ex-date arriving August 24, 2026, payable September 8.
  • The $1.50 annualized dividend yields approximately 0.66%, one of the lowest yields in this group.
  • Second-quarter 2026 total Revenue reached approximately $531 million, up 10% year over year, with GAAP Net Income of approximately $107 million.
  • The company repurchased approximately 2.57 million shares for $345.9 million, dwarfing its $17.9 million quarterly dividend payment.

Dividend Program and Shareholder Returns

Paycom (NYSE:PAYC) declared a quarterly common-stock dividend of $0.375 per share, with an ex-dividend date arriving August 24, 2026, payable September 8 to shareholders of record. On an annualized basis, this equals $1.50 per share, implying a yield of approximately 0.66% at current market prices, one of the lowest yields among companies with an ex-date this cycle.

Paycom paid approximately $17.9 million in cash dividends during the second quarter of 2026, a figure dwarfed by the company's share-repurchase activity during the same period, underscoring that Buybacks currently represent the dominant channel for Capital return.

About the Company

Paycom provides cloud-based human-capital-management software covering payroll, human resources, talent management, and benefits administration. The company's platform is designed to unify employee data and Payroll processes, serving businesses seeking to automate workforce administration while reducing manual processes and compliance risk.

Financial Performance Behind the Payout

Paycom's second-quarter 2026 total revenue reached approximately $531 million, up 10% year over year, with recurring and other revenue of approximately $505 million, up roughly 11%. GAAP net income was approximately $107 million, representing about a 20% net margin.

The company repurchased approximately 2.57 million shares for $345.9 million during the quarter, ending with roughly 44 million shares outstanding and approximately $1.66 billion remaining under its repurchase authorization.

Buybacks as the Primary Capital-Return Vehicle

The scale of Paycom's share repurchases relative to its dividend payment makes clear that management currently emphasizes buybacks as the primary method of returning capital to shareholders. This approach reduces share count over time, which can support per-share Earnings growth, but it means income-focused investors should not expect the dividend alone to represent the company's full capital-return story.

Paycom's growth outlook depends on new customer additions, retention, and product adoption, including automation tools such as Beti, while competition from larger human-capital-management providers remains a structural risk to monitor.

Outlook

Paycom's dividend appears well supported by Recurring Revenue and strong profitability, though it remains a secondary component of the company's overall capital-return strategy behind its substantial buyback program. Continued revenue growth, customer retention, and successful execution of automation initiatives will be the key drivers determining whether the company sustains its current growth trajectory and capital-return capacity.