Paycom

Paycom is a provider of cloud-based payroll and human capital management software, distinguished by a single database that handles hiring, payroll, time tracking and talent management in one system. It competes by pushing more administrative tasks directly to employees, a self-service approach it markets as reducing errors and cost for its business clients. Paycom only recently began paying a dividend, so its history is short, but the young payout is modestly sized and well covered by strong software margins. The low yield reflects a company still oriented toward growth, with distributions a secondary consideration. Its middling score points to an early-stage income profile, better suited to investors who want some yield alongside continued expansion rather than a mature dividend.