Sector: Information Technology
YTD Performance: +18%
America isn’t all about blue-chip corporations like Verizon, though, and that’s precisely why Paychex (PAYX) is a natural choice for the technology representative in our portfolio.
Paychex is an American success story if there ever was one. It started as a one-man shop in 1971 and has since grown to a $2 billion-a-year business that’s run out of more than 100 offices all across the country. Paychex provides payroll, human resource and benefits to small-to-medium-sized businesses — the backbone of America.
Small business has made for good business, too; Paychex has maintained or improved earnings for more than 12 straight quarters.
And while shares took a dip recently thanks to flat income and a not-so-hot outlook, PAYX still is an outperformer so far this year, beating the S&P 500 by 5 percentage points.