Sysco Co. (NYSE:SYY) Declares Dividend Increase – $0.51 Per Share

Sysco Co. (NYSE:SYY) declared a quarterly dividend on Thursday, April 25th, Zacks reports. Investors of record on Friday, July 5th will be given a dividend of 0.51 per share on Friday, July 26th. This represents a $2.04 annualized dividend and a dividend yield of 2.91%. The ex-dividend date is Friday, July 5th. This is an increase from Sysco’s previous quarterly dividend of $0.50.

Sysco has raised its dividend by an average of 3.2% annually over the last three years and has increased its dividend annually for the last 56 consecutive years. Sysco has a payout ratio of 44.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Sysco to earn $4.59 per share next year, which means the company should continue to be able to cover its $2.04 annual dividend with an expected future payout ratio of 44.4%.

Sysco Trading Down 0.8 %

Shares of SYY opened at $70.05 on Thursday. Sysco has a 12 month low of $62.24 and a 12 month high of $82.89. The stock’s 50-day moving average is $73.66 and its two-hundred day moving average is $76.36. The company has a debt-to-equity ratio of 5.77, a current ratio of 1.34 and a quick ratio of 0.77. The stock has a market cap of $34.88 billion, a PE ratio of 17.09, a P/E/G ratio of 1.90 and a beta of 1.18.

Sysco (NYSE:SYY) last released its quarterly earnings results on Tuesday, April 30th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.95 by $0.01. Sysco had a return on equity of 99.88% and a net margin of 2.66%. The firm had revenue of $19.38 billion for the quarter, compared to analyst estimates of $19.74 billion. During the same period in the previous year, the company posted $0.90 EPS. Sysco’s revenue for the quarter was up 2.7% on a year-over-year basis. Equities analysts forecast that Sysco will post 4.3 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SYY. Piper Sandler dropped their price target on shares of Sysco from $83.00 to $79.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 1st. Barclays dropped their target price on Sysco from $88.00 to $85.00 and set an “overweight” rating on the stock in a research report on Thursday, May 23rd. UBS Group cut their price target on Sysco from $92.00 to $87.00 and set a “buy” rating on the stock in a research note on Wednesday, May 1st. Deutsche Bank Aktiengesellschaft lowered their price objective on Sysco from $90.00 to $86.00 and set a “buy” rating for the company in a research note on Thursday, May 23rd. Finally, Truist Financial cut their target price on Sysco from $87.00 to $85.00 and set a “buy” rating on the stock in a research report on Monday, June 24th. Two equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $84.90.

About Sysco

Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.