Sysco Corporation to Issue Quarterly Dividend of $0.55 (NYSE:SYY)

Key Points

• Sysco declared a quarterly dividend of $0.55 per share, payable October 23 to shareholders of record on October 2, representing a 2.6% annualized yield. The company has increased its dividend for 57 consecutive years, with a current payout ratio of 47.2%.
• Sysco’s latest quarterly results exceeded expectations: adjusted earnings were $1.53 per share versus the $1.51 consensus estimate, while revenue rose 4.7% year over year to $22.12 billion.
• Analyst sentiment is moderately positive, with nine Buy, six Hold, and one Sell rating and a consensus price target of $89.50, compared with the stock’s opening price of $83.21.

Sysco Corporation (NYSE:SYY - Get Free Report) announced a quarterly dividend on Thursday, August 20th. Stockholders of record on Friday, October 2nd will be given a dividend of 0.55 per share on Friday, October 23rd. This represents a c) annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, October 2nd.

Sysco has raised its dividend by an average of 0.0%annually over the last three years and has raised its dividend annually for the last 57 consecutive years. Sysco has a dividend payout ratio of 47.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Sysco to earn $5.37 per share next year, which means the company should continue to be able to cover its $2.20 annual dividend with an expected future payout ratio of 41.0%.

Sysco Stock Up 0.9%

Shares of NYSE SYY opened at $83.21 on Friday. The business has a 50-day moving average of $82.55 and a two-hundred day moving average of $80.62. The company has a market capitalization of $39.84 billion, a price-to-earnings ratio of 22.74, a price-to-earnings-growth ratio of 2.82 and a beta of 0.64. Sysco has a 1 year low of $68.19 and a 1 year high of $91.85. The company has a debt-to-equity ratio of 4.62, a current ratio of 1.28 and a quick ratio of 0.77.

Sysco (NYSE:SYY - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.02. Sysco had a net margin of 2.08% and a return on equity of 95.05%. The business had revenue of $22.12 billion during the quarter, compared to the consensus estimate of $21.95 billion. During the same quarter in the previous year, the firm earned $1.48 EPS. The company's revenue was up 4.7% compared to the same quarter last year. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. On average, analysts forecast that Sysco will post 5.1 earnings per share for the current fiscal year.

Analysts Set New Price Targets

SYY has been the topic of several recent research reports. Piper Sandler upped their price target on shares of Sysco from $77.00 to $84.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Morgan Stanley upped their price objective on Sysco from $84.00 to $88.00 and gave the company an "equal weight" rating in a research report on Thursday, July 16th. Wall Street Zen downgraded shares of Sysco from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Melius Research lowered Sysco from a "hold" rating to a "sell" rating in a research note on Tuesday, July 7th. Finally, Barclays dropped their target price on Sysco from $92.00 to $86.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Sysco presently has an average rating of "Moderate Buy" and a consensus price target of $89.50.

About Sysco

Sysco Corporation NYSE: SYY is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.

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