Sysco reported its fourth quarter (fiscal 2020) earnings results on August 11th, 2020. Contact Haselkorn & Thibaut, P.A. This Dividend King is off about 10% vs. a drop of 34% for the benchmark S&P 500. This Dividend King has increased their dividend for 53 consecutive years. Our kings list includes or DSO dividend rating which is calculated using weighted scores for yield, dividend growth, revenue growth, payout ratio, yield value and one year return. The combination of organic sales growth, acquisition-added revenue growth, and share repurchases is expected to result in 5.2% annual earnings-per-share growth, in our view. The company is a dividend king with a 50-year history of annual dividend increases. There are only 30 such companies in the US, and perhaps a couple more in the rest of the world. Does this mean they will always pay a dividend? In late January of last year (1/28/19), Sysco announced the acquisition of Waugh Foods, Inc., a food distributor with approximately $40 million of sales. Sysco should have little trouble increasing its dividend going forward. Return data for August 2019 is shown below: 1. Dividend Kings August 2019 total return: 1.8% 2. Dividend articles featuring Sysco (SYY): 2020-11-20 The Retiree's Dividend Portfolio - Jane's October Update: Time To Take Some Gains 2020-11-16 Minimal Dividend Growth Expected From Sysco And Becton Dickinson In Second Half Of November 2020-11-06 6 Dividend Increases Expected In November 2020 2020-11-04 65 40-Year Plus Annual Dividend Boosters In November Why Invest in Dividend Kings. The king said the pandemic offered an opportunity to build the resilience needed to confront other global crises, including climate change and food insecurity.The number of people at risk of hunger is expected to almost double to 265 million this year, in part due to the economic impact of steps to contain the virus, the king said. It is the largest company in its industry, which provides it with higher profit margins and durable competitive advantages over its smaller rivals. It has paid a dividend every quarter since it went public in 1970. Sysco has a long history of steady dividends, and regular dividend increases. Dividend Kings are an elite subset of dividend paying stocks. Most do not drop off the list except due to mergers or acquisitions, such as Vectren and Connecticut Water Service. The Dividend Kings list can be a good source for selecting dividend stocks. 2020 Barclays Global Consumer Staple Conference Presentation, 2008 earnings-per-share of $1.81 (13% increase), 2009 earnings-per-share of $1.77 (2% decline), 2010 earnings-per-share of $1.99 (12% increase). Conclusion: SYY did not earn any Stars in the Fair Value section, earned two Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a total of three Stars. SYY Dividend History & Description — Sysco Corp. Sysco, acting through its subsidiaries and divisions, is a distributor of food and related products to the foodservice or food-away-from-home industry. SYY's next quarterly dividend payment will be made to shareholders of record on Friday, January 29. We believe this is an attainable goal, due to the company’s strong business model and impressive competitive advantages. Just because a company has increased its dividend for 50 years does not mean it will continue forever. Another more useful way to determine which Dividend King is the best investment now is to use the dividend discount model ... SYY also offers restaurant quality … Jul 12, 2020 2:29 PM EDT Dividend Champions Dividend Kings Seeking Alpha. Dividend King #1: Sysco Corporation (SYY) Sysco Corporation is the largest wholesale food distributor in the United States, and is expanding internationally. The Dividend Kings outperformed the S&P 500 ETF (SPY) in August of 2019 on a relative basis. Continued acquisitions such as this help Sysco generate growth in a fairly saturated–and highly competitive–food distribution industry. Restaurant traffic slowed down, driven by several factors including eroding mall traffic, and low grocery prices. A crucial link in the food chain. SYY Dividend Chart. This is why Sysco’s profits held up well during the Great Recession: Sysco grew earnings-per-share at a double-digit pace in 2008 and 2010, with only a mild dip in 2009. Read More . Last fiscal year, Sysco had sales of $53 billion. In this article, I examine Sysco Corporation (SYY), whose Dividend King status may not be safe due to the impact of the coronavirus. Next Ex-Dividend date is expected on 01/07/2021 Last Price $73.22 Cboe Previous Close - Real-Time Last Sale as of 4:00PM ET 12/30/20 Cboe Real-Time Quotes. Today, the index covers about 80% of the available U.S. market capitalization and is comprised of 505 companies. Sysco stock has had a difficult 2020, mostly due to the impact of the COVID-19 pandemic on restaurants and bars. What they do have are dividend kings though. I've saved the best Dividend King for last. April 18, 2020 November 28, 2020 Dividend Power. In times of economic uncertainty, we recommend investors stick with tried-and-true dividend stocksFor this reason, we recommend investors look at Sysco Corporation (SYY) , a Dividend King … SYY Dividend History & Description — Sysco Corp. Sysco, acting through its subsidiaries and divisions, is a distributor of food and related products to the foodservice or food-away-from-home industry. Sysco is a Dividend King having raised the dividend for 50 years. Dividend articles featuring Sysco (SYY): 2020-11-20 The Retiree's Dividend Portfolio - Jane's October Update: Time To Take Some Gains 2020-11-16 Minimal Dividend Growth Expected From Sysco And Becton Dickinson In Second Half Of November 2020-11-06 6 Dividend Increases Expected In November 2020 2020-11-04 65 40-Year Plus Annual Dividend Boosters In November The stock price is down significantly from its 52-week high and simultaneously he yield is approximately 4.5%. This is a valid question. It was established through the merger of Pepsi-Cola and Frito-Lay. A Dividend King is a stock with 50 or more consecutive years of dividend increases. Each of these companies have increased their dividend annually sine 1970! We expect Sysco to deliver 5.2% annual earnings growth going forward, consisting of organic growth, acquisitions, and share repurchases. We believe future returns will be satisfactory, but not spectacular, for investors buying the stock at the current valuation level. But, rest assured. These companies not only survived all the stock market booms and crashes, but found a way to be profitable and pay a dividend. To be considered a dividend King, there is one requirement. The companies included as dividend kings on the list below focuses on … Here's what you need to know about current Dividend Kings and … Away-from-home has rebounded since the lows, but still hasn’t regained its pre-COVID-19 levels. A Dividend King is to be respected. Sysco Corporation (SYY) is without a doubt a great company. In other words, we view the past and assume it will continue without sufficient analysis of what could change. Are you a victim of investment fraud? It serves fresh, refrigerated, and frozen foods to over 50,000 customers, and has a leading presence in the U.K., France, Sweden, Ireland, Belgium, Spain, and Luxembourg. Read More . Almost 16,000 customers created these market places. The highest yielding Dividend King at the moment is Altria (MO). Sysco operates at the top of its industry. The Dividend Kings are the best in class with respect to dividend endurance. L’indice des dividendes aristocrates doit toujours comprendre au moins 40 titres. Please send any feedback, corrections, or questions to support@suredividend.com. The stock is slightly overvalued, meaning right now is not the best time to buy the stock. There is now one more Dividend King since Sysco Corporation (SYY) recently raised the quarterly dividend permitting this company to enter this exclusive list. 1.25%: $0.65: 21.96%: 15.45%: 13: 23.58: CSV / Excel Export To export this table to CSV or Excel, upgrade to MarketBeat All Access. Unlike the S&P 500 Dividend Aristocrats, this list of companies is not officially tracked by a ratings companies. Sysco pays an annual dividend of $1.80 per share, with a dividend yield of 2.42%. There are only 28 such companies in the US, and perhaps a couple more in the rest of the world. Many of these customers have faced extreme hardship as a result of the ongoing pandemic. The rate and schedule are determined by the company’s board of directors. The Dividend Kings list can be a good source for selecting dividend stocks. SYSCO Corporation (SYY) Dividend Stock Analysis. The short answer is that the dividend kings are a list of S&P 500 companies that have increased their dividends for 50 plus years. If it weren’t for the COVID-19 disruptions to the business, we believe that the company’s true “earnings power” would be $3.50. Sysco has a long history of steady dividends, and regular dividend increases. As a result, weekly sales greatly improved over time. Typically it is associated with a class of shares. It is not a small achievement to have been able to reward long-term shareholders with a dividend raise for over half a century. They don’t have castles, or grand palaces, or even have nice old ladies waving at everybody in shockingly bright coloured clothes. There are three companies which are set to potentially join the elite list of dividend kings by the end of 2020. The company has grown steadily over the nearly five decades since. The company has grown its dividend for the last 40 consecutive years and is increasing its dividend by an average of 7.95% each year. It's the best, because home-improvement retailer Lowe's (NYSE: LOW) is a strong business you'd want to own even if it didn't pay a dividend. Quotes Snapshot > SYY. Companies that pay dividends are typically more mature companies that are paying out a dividend as a source of earnings. It also has growth potential, and the ability to increase its dividend each year. Seeking Alpha - Sysco Corporation (SYY) is without a doubt a great company. Though it is facing headwinds at the moment, we believe that these will mitigate as a recovery from COVID-19 eventually takes place. Prior to joining ABS, he has worked a financial advisor and inside sales desk manager for a broker-dealer. Shares have declined almost 23% year-to-date. And like the other Dividend Kings on this list, SYY is a dividend-raising machine. There are no other restrictions to be part of this elite list. The FY 2017 dividend was $2.58/share ( two dividend payments of 66 cents/share plus two dividend payments of 63 cents/share). Sysco has a long history of steady dividends, and regular dividend increases. This year, there are several new entrants into this exclusive Dividend Kings, including food distributor Sysco Corporation . To be considered a dividend King, there is one requirement. Read: Dividend Cuts in 2020 have cost Lanny nearly $1,000 in Annual Dividend Income. The company is a dividend king with a 50-year history of annual dividend increases. Dividend Kings are companies that have increased their dividend for 50+ consecutive years Are Dividend Kings Worth Investing In. It also has a large segment of other customer types such as bakeries, churches, civic and fraternal organizations, vending distributors, and international exports. We do anticipate that this will occur and the company’s dividend will continue to move higher. The Dividend Kings list can be a good source for selecting dividend stocks. But for income investors, the ability of a company to pay, and in many cases, to increase its dividend is a key indicator of financial strength. The company has a wide range of customers, which include restaurants, healthcare facilities, education and government offices, travel, leisure and retail businesses. Shareholders are usually eligible for dividends as long as they own the stock. The Dividend King … This year, there are several new entrants into this exclusive Dividend Kings, including food distributor Sysco Corporation (SYY). Stocks that carry the Dividend King designation have increased their dividend for 50 consecutive years or more. Get your free list of 21 Dividend Stock Picks & Market Reports For Advisors & Accredited Investors. To become a Dividend King, a company must boost its dividend for at least 50 years in a row. In fact, it is a rather simple requirement. Unfortunately, all that changed with the onset of the coronavirus pandemic, which has had a negative impact on the company’s results in 2020. Consumers were forced to eat more meals at home, which resulted in increases in grocery store traffic. Hormel operates in a sector that performed well during the pandemic, as people stockpiled food and supplies. Stocks that carry the Dividend King designation have increased their dividend for 50 consecutive years or more. Because of the use of Fiscal Years, rather than Calendar Years, I excluded Parker - Hannifin from the first list of dividend kings that I compiled in 2010 . Dividend kings are companies who have increased their dividend payout for at least 50 consecutive years. With its impressive fundamentals, including credit safety, a dividend king's dividend … It distributes products including fresh and frozen foods, as well as dairy and beverage products. The last dividend was in November 2019, when Sysco hiked quarterly dividends by … A Dividend King is a stock with 50 or more consecutive years of dividend increases. They rise above a majority of dividend stocks that in the history of paying dividends. Social distancing restrictions in response to COVID-19 severely limited away-from-home dining options for consumers, Source: 2020 Barclays Global Consumer Staple Conference Presentation. More importantly, learn if Sysco seems likely to reward dividend investors with many more years of income growth and if today’s valuation appears to be reasonable. Sysco’s stable industry and top competitive position, allowed it to raise its dividend each year, even during recessions. Sysco. With its impressive fundamentals, including credit safety, a dividend king's dividend tradition, less than 50% LTM EPS payout, and a decently narrow moat, it was high on my list when I considered companies to invest in during the pandemic. There are thousands of competitors to Sysco, which include other food distributors, as well as wholesale or retail outlets, grocery stores, and online retailers. Dividend investing has proven to the be an effective way for investors to compound their wealth and income over time. To be considered a dividend King, there is one requirement. Finally, Pepsi does not follow the typical dividend payment pattern of the other quarterly dividend stocks that pay dividends in January, April, July, and October. Unlike the S&P 500 Dividend Aristocrats, this list of companies is not officially tracked by a ratings companies. 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