Paychex

Paychex provides payroll, human resources and benefits administration services, primarily to small and mid-sized businesses across the United States. Its outsourced, subscription-like model produces highly recurring revenue, and it earns additional income on the client funds it holds while processing payroll, a benefit that grows when interest rates rise. Paychex has a long record of paying and raising its dividend, supported by asset-light operations that convert profit into cash efficiently. The yield is above average for the technology-adjacent space, and the payout ratio, while relatively high, is underpinned by stable demand for essential back-office services. Its solid score reflects a dependable, growing distribution from a steady, cash-generative business.