Sysco Corporation (NYSE:SYY) Raises Dividend to $0.55 Per Share

Sysco Corporation (NYSE:SYY) declared a quarterly dividend on Friday, April 17th. Shareholders of record on Thursday, July 2nd will be paid a dividend of 0.55 per share on Friday, July 24th. This represents a c) dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Thursday, July 2nd. This is a 1.9% increase from Sysco’s previous quarterly dividend of $0.54.

Sysco has raised its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend every year for the last 57 years. Sysco has a payout ratio of 47.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Sysco to earn $4.96 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 44.4%.

Sysco Trading Up 0.7%

Shares of Sysco stock opened at $83.40 on Tuesday. Sysco has a 1 year low of $68.19 and a 1 year high of $91.85. The stock has a fifty day moving average price of $76.20 and a 200-day moving average price of $78.63. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80. The firm has a market cap of $39.88 billion, a PE ratio of 23.10, a P/E/G ratio of 3.38 and a beta of 0.65.

Sysco (NYSE:SYY) last released its earnings results on Tuesday, April 28th. The company reported $0.94 earnings per share for the quarter, missing analysts’ consensus estimates of $0.95 by ($0.01). Sysco had a net margin of 2.08% and a return on equity of 103.57%. The company had revenue of $20.52 billion for the quarter, compared to the consensus estimate of $20.56 billion. During the same period in the prior year, the company earned $0.96 earnings per share. The firm’s revenue was up 4.7% on a year-over-year basis. Sysco has set its Q4 2026 guidance at 1.510-1.510 EPS. Equities research analysts anticipate that Sysco will post 4.59 EPS for the current year.

Wall Street Analyst Weigh In

SYY has been the topic of several research reports. Sanford C. Bernstein lowered their target price on Sysco from $90.00 to $85.00 and set a “market perform” rating on the stock in a research note on Wednesday, April 29th. Citigroup lifted their price objective on Sysco from $78.00 to $80.00 and gave the stock a “neutral” rating in a report on Wednesday, April 29th. UBS Group dropped their price objective on shares of Sysco from $95.00 to $90.00 and set a “buy” rating on the stock in a report on Thursday, April 2nd. Wall Street Zen lowered shares of Sysco from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Finally, Piper Sandler dropped their price target on shares of Sysco from $83.00 to $77.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 7th. Nine investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $88.15.

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.