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

Sysco Co. (NYSE:SYY) announced 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 yield of 2.91%. The ex-dividend date of this dividend is Friday, July 5th. This is a positive change from Sysco’s previous quarterly dividend of $0.50.

Sysco has raised its dividend by an average of 3.2% per year over the last three years and has raised its dividend every year for the last 56 years. Sysco has a payout ratio of 44.2% indicating that its dividend is sufficiently covered by earnings. Equities 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 Price Performance

SYY stock opened at $70.05 on Thursday. The stock has a 50-day moving average price of $73.66 and a two-hundred day moving average price of $76.36. Sysco has a 1 year low of $62.24 and a 1 year high of $82.89. The stock has a market cap of $34.88 billion, a PE ratio of 17.09, a price-to-earnings-growth ratio of 1.90 and a beta of 1.18. The company has a current ratio of 1.34, a quick ratio of 0.77 and a debt-to-equity ratio of 5.77.

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

Analysts Set New Price Targets

A number of analysts have recently issued reports on SYY shares. Guggenheim upgraded shares of Sysco from a “neutral” rating to a “buy” rating and set a $85.00 price objective on the stock in a report on Tuesday, May 28th. Morgan Stanley cut their price target on shares of Sysco from $84.00 to $82.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 23rd. BMO Capital Markets reduced their price target on Sysco from $90.00 to $85.00 and set an “outperform” rating for the company in a research report on Thursday, May 23rd. Piper Sandler lowered their price target on Sysco from $83.00 to $79.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 1st. Finally, Truist Financial cut their price objective on Sysco from $87.00 to $85.00 and set a “buy” rating for the company in a report on Monday, June 24th. Two analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to data from MarketBeat.com, Sysco currently has a consensus rating of “Moderate Buy” and an average target price of $84.90.

Sysco Company Profile

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.